Prepared Explosives classification for ANFO confirmed; exemption under the cited notification was unavailable.

ANFO manufactured by mixing ammonium nitrate and diesel oil was treated as falling within "Prepared Explosives" under Chapter Heading 3602.00, with the HSN used as an interpretative aid where the tariff contained no specific definition. On that basis, the product was regarded as excisable. Exemption under Notification No. 167/86, as amended, was unavailable because "Prepared Explosives" were not covered on the relevant dates and the amendment did not extend the benefit to the tariff heading under which ANFO fell. The prior Tribunal ruling on the same product was treated as fully answering the assessee's objections.

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Issues: Whether ANFO manufactured by mixing Ammonium Nitrate and Diesel Oil was classifiable as "Prepared Explosives" under Chapter Heading 3602.00 and therefore liable to central excise duty, and whether it was eligible for exemption under Notification No. 167/86 as amended.

Analysis: The material used by the assessee was held to fall within the scope of "Prepared Explosives" because the Harmonised System of Nomenclature included mixtures based on Ammonium Nitrate within that expression. In the absence of a specific definition in the tariff, reliance on HSN was treated as proper. The claim for exemption failed because, on the relevant dates, "Prepared Explosives" were not covered by Notification No. 167/86, and the amendment by Notification No. 12/87 did not extend the exemption to the tariff heading under which ANFO fell. The earlier Tribunal decision on the same product was treated as fully answering the assessee's contentions.

Conclusion: ANFO was rightly treated as excisable "Prepared Explosives" and was not entitled to exemption under Notification No. 167/86.

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