9911796707
TMI Blog1977 (9) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... orders in appeal No. 1891/75 (Annexure 1) dated 4-11-1975 and No. 1952/75, dated 10-11-1975 were passed by the Appellate Collector of Central Excise, Madras in order to satisfy itself whether the said orders were legal, proper and correct. From an examination of the case records, prima facie, it appeared to the Government that the said orders are not correct in law and it is therefore proposed to set them aside in exercise of the powers vested in Government under Section 36(2) ibid. A show cause notice dated 28-10-1976 was accordingly issued to M/s. Dhrangadhra Chemical Works Limited 'Sahupuram' Arumuganeri Post, Tirunelveli District (Tamil Nadu), hereinafter called the party, calling upon them to show cause why the impunged appellate ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellate Collector that the gas in question was neither compressed nor liquified chlorine as known in the market and accordingly it was not excisable under Item 14H of the Tariff as the said item included compressed, liquified or solidified gases only. There was actually no compression. It was further submitted that the said gas used for the manufacture of Hydrochloric acid was neither sold nor was capable of being sold as chlorine. It was also pleaded that the said gas could also not be treated as liquid chlorine according to the l.S.l. Specification, which provides that liquid chlorine shall contain not less than 99.8% volume of Chlorine Gas. 5. Vide his aforementioned orders the Appellate Collector of Central Excise, Madras, held that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mply deliberate compression and an incidental negligible rise in pressure inevitable in any manufacturing process cannot be considered as 'compression' in terms of the Tariff. In support of this contention they have relied on the judgment of the Supreme Court in South Bihar Sugar Mills Limited v. Union of India 1978 E.L.T. (J 336) = (AIR 1968 SC 922). It has been further stated that the wet chlorine in question is not `goods' within the meaning of Section 3 of the Central Excise and Salt Act, 1944 nor it is chlorine as contemplated in Item 14H and that in wet form it is incapable of being stored in containers for the purpose of sale. It has been emphasised that no dealer or user or consumer would regard or consider the aforesaid mixture of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er sq. inch and that the mere fact at one stage or the other Kiln gas is compressed at 40 to 45 lbs per sq. inch by a pump or otherwise cannot mean that it is compressed carbon dioxide. Viewed from this angle Government observe that compression as contemplated under Item 14H should be compression as generally understood in the relevant trade. Since it has not been defined in the Tariff itself one may go by the standard prescribed in the I.S I. for chlorine. In the circumstances, the gas in question which passed through the pipe line cannot be treated as compressed gas, chlorine or otherwise. 11. Their Lordships of the Supreme Court in the D.C.M's case (Civil Appeals Nos. 168-170 of 1960-1977 E.L.T. (J 199), have laid down the test that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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