https://www.taxtmi.com/caselaws?id=34161 Naphtha exempted for use in manufacturing ammonia or fertilizer retained the exemption once the notified intended use was established and ammonia was in fact produced, even though intermediate industrial products and further downstream processing followed. The presence of by-products or subsequent processing did not defeat the benefit where the prescribed purpose and procedure were satisfied. On that footing, the duty demand failed and the penalty under Rule 173Q(1) also fell away because it rested on the same rejected assumption that the exemption was unavailable. The assessee was therefore held entitled to the exemption notification. en-us Thu, 15 Jan 2009 00:00:00 +0530 Mon, 20 Jul 2009 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=34161 Naphtha exempted for use in manufacturing ammonia or fertilizer retained the exemption once the notified intended use was established and ammonia was in fact produced, even though intermediate industrial products and further downstream processing followed. The presence of by-products or subsequent processing did not defeat the benefit where the prescribed purpose and procedure were satisfied. On that footing, the duty demand failed and the penalty under Rule 173Q(1) also fell away because it rested on the same rejected assumption that the exemption was unavailable. The assessee was therefore held entitled to the exemption notification. Case-Laws Central Excise Thu, 15 Jan 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=34161