Exemption for inputs to manufacture ammonium nitrate melt denied because the product was not treated as fertilizer.

Ammonium nitrate melt was held not to be fertilizer for purposes of Chapter X and the relevant exemption notification, so the assessee could not claim duty-free procurement of furnace oil and low sulphur heavy stock used in its manufacture. The Tribunal relied on the earlier decision in the assessee's own case and found no reason to depart from it. As a result, the Revenue's appeal succeeded, the relief granted to the assessee was set aside, and the cross-objection was dismissed.

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Issues: Whether ammonium nitrate melt qualified as fertilizer so as to entitle the assessee to procure furnace oil and low sulphur heavy stock under Chapter X and the exemption notification.

Analysis: The Tribunal noted that the same controversy had already been decided in the assessee's own case, where ammonium nitrate melt was held not to be fertilizer and the benefit of the exemption notification was found inadmissible for L.S.H.S. used in its manufacture. No reason was found to depart from that earlier decision.

Conclusion: Ammonium nitrate melt was not treated as fertilizer for the claimed exemption, and the assessee was not entitled to the benefit of the notification for its manufacture.

Final Conclusion: The appeal succeeded for the Revenue and the order granting relief to the assessee was set aside, while the cross-objection was dismissed.

Ratio Decidendi: For exemption under Chapter X and the relevant notification, ammonium nitrate melt was held not to be fertilizer, so the exemption benefit was unavailable for inputs used in its manufacture.

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