2010 (3) TMI 561

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....the said product is excisable and chargeable to duty at the rate of 16% BED. The said products are regularly supplied for various industrial uses and are cleared on payment of duty under cover of invoice as per Rule 8 read with Rule 11 and the monthly returns are also filed as per Rule 12 of the Central Excise Rules, 2002. 3. The said sulphuric acid are also used for manufacturing of fertilizers and as a measure of relief to the fertilizer manufacturers, they are allowed to procure the said goods i.e. sulphuric acid under bond without payment of duty by issuing appropriate CT-3 certificate to the sulphuric acid manufacturers under the provisions of Notification No. 4/2006 dated 1-3-2006. Accordingly, the appellants have supplied the said....

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....turers under bond/against CT-3 Certificate cannot be considered as exempted goods. To support his contention he placed reliance on various decisions as under : (1)        CCE, Nagpur v. Ballarpur Industries Ltd. - 2007 (215) E.L.T. 489 (S.C.) (2)        CCE, Mumbai v. DCW Ltd. - 2009 (234) E.L.T. 163 (Tri.-Chennai) (3)        CCE, Vapi v. Advance Surfactants India Ltd. - 2008 (88) R.L.T. 275 (CESTAT-Ahmd.) (4)        Kesoram Rayon v. CCE, Kolkata-IV - 2007 (83) R.L.T. 397 (CESTAT-Kol.) (5)        CCE, Jaipur v. Guljag Industries Limited - 2008 (86) R.L.T....

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....tain separate account and hence the department has demanded 8% of the value of sulphuric Acid is not sustainable and credit on inputs is not tenable in respect of the sulphuric acid supplied duty free under Chapter X Procedure. In the case of CCE, Jaipur v. Guljag Industries Limited reported in 2008 (86) RLT 133 (CESTAT-Del.) again it was held that goods removed wherein it was held that the Rule 57CC of the said erstwhile Rules is not applicable in respect of clearance under Chapter X procedure, which is neither exempted goods nor chargeable to Nil rate of duty. Further I find that the impugned order has been passed by the lower appellate authority following the decision of the Ballarpur Industries Ltd. (supra). I find that in the case of B....