2000 (1) TMI 364

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...., for the Respondents. [Order]. - This is the department's appeal against the above captioned order dated 5-12-1994 praying for setting aside the same and to restore the order-in-original of the Assistant Collector. 1. The facts of the case in brief are that the respondent manufactures nitrobenzene and para tolune sulphuric acid falling under chapter heading 2904.00 to the schedule o....

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....t is classifiable under heading 28.07. The CEGAT should have considered that when separately defined chemicals are covered under chapter 28 or 29 it cannot be classified under chapter 38, in view of chapter note (1) and (2) of chapter 28. It is held that the spent acid is actually sulphuric acid in diluted form in the concentration between 51% to 60%, but the chapter heading 28.07 does not mention....

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....the notices only seeks recovery of the Modvat credit wrongly availed and the imposition of the penalty and the question of classification is not involved. The order-in-original which is supported by the learned JDR does not deal with the classification of spent acid, but exclusively deals with availment of Modvat under rule 57F (iii) of the Central Excise Rules. The demand is confirmed and the que....

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....5 of the judgment is also narrated in the course of the order in pages 3 & 4. The question of availability of Modvat credit to the full extent of sulphuric acid was decided uniformly to the effect that credit can be taken on the full quantity of sulphuric acid in the manufacture of detergent/nitrobenzene etc. The impugned order is passed on the orders of the Tribunal and CBEC circulars and has con....