1987 (6) TMI 152

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....944 for the manufacture of Navasagar and also whether Central Excise duty demanded in Show Cause Notice dated 25-2-1980 read with Show Cause Notice dated 10-4-1980 covering the period from 11-11-1974 to 2-11-1979 was payable by the appellants under Rule 196 of the Central Excise Rules, 1944. 2. Arguing for the appellants, Shri Jagesha, Consultant has stated that under Notification No. 164/69-CE dated 11.6.1969, ammonium chloride falling under Central Excise Tariff Item 14-HH was exempted from the whole of Central Excise duty if it was intended to be used for the manufacture of (i) Dry Cell batteries, (ii) Yeast food and (iii) Ice or if it was intended to be used as (i) Tinning flux, (ii) Soldering and galvanising materials, (iii) Tanners....

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....ule 192 of the Central Excise Rules. The above position continued till 25-2-1980 when the Department issued a show cause notice to the appellants asking them to explain as to why duty should not be recovered on the entire quantity of ammonium chloride received by them in the factory under Chapter X of the Central Excise Rules and the L-6 licence granted to them should not be cancelled as they were not eligible to the concession under Notification No. 164/69-CE dated 11-6-1969. This was followed by another show cause notice dated 10-4-1980 demanding the duty of Rs. 77,585.75 covering the period from 11-11-1974 to 2-11-1979. Learned consultant has further stated that the ammonium chloride was used by them for the purposes declared by them in ....