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TMI Blog2008 (9) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... such a situation, the pressure inside the cylinders is reduced by way of degassing. The process continues till the required quantity of liquid chlorine is filled into the cylinders. The degassed chlorine vapour is contaminated because of its association with air and other impurities which also enter the cylinder in the course of filling and becomes sniff or waste gas which is neither usable nor marketable as such – Held that in view of Circular No. 2/88-C.E remission of duty allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... is essential to complete the manufacture of liquid chlorine in a marketable form which is capable of being removed for sale. The quantity of liquid chlorine stored in storage tanks and also in cylinders is duly accounted for by the Appellants in RG-1 or Daily Stock Account. The Appellants stress that filling in cylinders is a continuation of the manufacturing process without which liquid chlorine will get evaporated and lost. In the case of liquid chlorine, fifing in cylinders is not merely for the convenience of packing, handling or transport, but filling process is an integral part of the entire production process of chlorine without which the liquid chlorine cannot be bought and sold in the market. 4. Learned Sr. Advocate states that d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntains non-condensable gaseous impurities and therefore is neither usable nor marketable. He draws our attention to the Board's Circular No. 2/88-C.E., dated 21-3-1988 which clarifies on the basis of the opinion of the Deputy Chief Chemist that the sniff gas is a waste and not goods as the same is incapable of being sold and hence not excisable. 6. Heard the learned Departmental Representative (JDR) Shri Manish Kumar, Shri Manish Kumar primarily argues that the liquid chlorine itself is a manufactured product and since the same has attained the RG-1 stage, any loss arising thereafter cannot be held to be a loss during manufacturing process and duty on such quantity of loss is required to be discharged in the absence of any remission of suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s which is fully accounted for. In case any order of remission was a technical requirement of the Rules, in view of the fact that the Appellant Assessee has fully explained the loss and accounted for the same, such remission should have been allowed by the Authorities below. In respect of the first period, since that has not been done we allow remission of the duty on the quantity lost during the special filling process. In respect of the second period, the lower appellate Authority has already set aside the impugned demand and in our view the same requires no interference. In the result Appeal No. 298/2005 filed by the Appellant Assessee is allowed and Appeal No. 57/2008 filed by the Department is dismissed. (Operative part of the order w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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