Tariff classification of Oleum as sulphuric acid supported fertilizer-use exemption because the notifications did not distinguish by-products.

Oleum was treated as fuming sulphuric acid and therefore fell within Tariff Item 14G as sulphuric acid under the Central Excise and Salt Act, 1944. The exemption notifications for sulphuric acid used in the manufacture of fertilizers applied on their plain language, which did not distinguish between a primary product and a by-product. The relevant test was whether Oleum was used in a process resulting in the manufacture of fertilizer, and Ammonium Sulphate was recognised as a chemical fertilizer. The exemption conditions were satisfied, so the challenge failed.

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Issues: Whether Oleum, being fuming sulphuric acid, fell within Tariff Item 14G of the First Schedule to the Central Excise and Salt Act, 1944 and qualified for exemption when used in the manufacture of fertilizer, notwithstanding that the resultant fertilizer was a by-product.

Analysis: Oleum was treated as fuming sulphuric acid and therefore as sulphuric acid within Tariff Item 14G. The exemption notifications covered sulphuric acid intended for use in the manufacture of fertilizers. Their language did not draw any distinction between a primary product and a by-product. The relevant test was whether the use of Oleum resulted in the manufacture of a fertilizer, and Ammonium Sulphate was accepted as a chemical fertilizer. The conditions of the notifications were therefore satisfied.

Conclusion: The exemption was available and the challenge failed.

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