Sulphuric acid exemption for fertiliser manufacture extends to cooling tower use linked to the production process.

Sulphuric acid used in a cooling tower to control the pH level of water in ammonia and urea plants was treated as used in the fertiliser manufacturing process and therefore fell within Notification No. 81/75-C.E. dated 22-3-1975. The Tribunal relied on its earlier order in the assessee's own case and prior decisions recognising that sulphuric acid used in a fertiliser plant qualifies for the exemption where it is intended for use in the manufacture of fertilisers. On that basis, the denial of exemption was held unsustainable and the assessee was entitled to the notification benefit.

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Issues: Whether sulphuric acid used in the cooling tower for controlling the pH level of water used in the ammonia and urea plants was eligible for exemption under Notification No. 81/75-C.E. dated 22-3-1975.

Analysis: The Tribunal treated the dispute as covered by its earlier order in the assessee's own case. It noted that the notification exempts sulphuric acid intended for use in the manufacture of fertilisers, and that the acid used in the cooling tower was employed in relation to the fertiliser manufacturing process. The Tribunal also followed its earlier decisions holding that sulphuric acid used in a fertiliser plant qualifies for the benefit of the notification.

Conclusion: The assessee was entitled to the benefit of Notification No. 81/75-C.E. dated 22-3-1975, and the denial of exemption was unsustainable.

Ratio Decidendi: Sulphuric acid used in a cooling tower as part of the fertiliser manufacturing process is eligible for exemption under the notification granting relief to sulphuric acid intended for use in the manufacture of fertilisers.

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