1998 (8) TMI 181

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....er S.H. 3823.00 as prayed by the Revenue in appeal petition. 2. We heard Shri H.K. Jain, ld. S.D.R. and Shri H.C. Joshi, ld. Counsel for M/s. Metasulf India Ltd., Respondents. 3. The Respondents manufacture insoluble sulphur of various grades. According to the Respondents, for manufacturing insoluble sulphur they need inert gas; they had set up a plant which consists of a combustion chamber where the atmospheric air is fed into a coil flame and the resultant gas is cooled and put into holding tank from where it is distributed to the plant through pipelines. The gas is entirely consumed captively. The EXO gas comprises of Nitrogen (79.70%), Carbondioxide (4.40%) and other gases (15.90%). The Additional Collector treated the Exo gas as ....

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....7; i.e. prior to filing of the classification list. Shri H.C. Joshi, ld. Advocate submitted that the process of manufacturing EXO Gas is by burning the atmospheric air with the help of flame; that by this process the Oxygen is burnt out and what is left is Nitrogen gas with impurities; that gas so obtained cannot be considered as a mixed chemical as other gases present there are in the form of impurities. He also submitted that Notification No. 40/85 exempts Nitrogen Gas used captively; that show cause notice is time barred and extended period for issuing show cause notice is not applicable as department was aware of the manufacturing process and they were under the bona fide belief that the impugned product is not excisable being captively....