2000 (6) TMI 669

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....ate, for the Appellant. Shri Karnail Singh, SDR, for the Respondent. [Order per : Gowri Shankar, Member (T)]. -  The applications are for waiver of deposit of duty of Rs. 39.14 lacs demanded from M/s. Deepak Fertilizers, and penalty of the equivalent amount under Section 11AC of the Act, and a penalty of Rs. 50,000/- under Rule 209A on Sudhakar Zode, its Manager. 2. The asses....

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....mmonia received by it under exemption without payment of duty used in the manufacture of the nitric acid cleared on payment of duty. In the order impugned in the appeal, the Commissioner has held that, by application of the provisions of Rule 57CC, 8% of the total sale price of that quantity of fertiliser manufactured out of the ammonia procured from outside ought to have been paid by the assessee....

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....itric acid but manufacture of exempted fertiliser. It is contended that the flow chart (which is referred to in the paragraph of the notice dealing with suppression) submitted to the Assistant Commissioner, following his visit to the factory in connection with the permission for common storage of the ammonia brought from outside and the ammonia manufactured in the factory, clearly indicates the us....

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....disclosed to the department. As we have seen, the flow chart itself indicates the use. Apart from that, it emerges from the argument advanced before us that in the process undertaken by the applicant in its factory, the ammonia cannot be converted into ammonia nitrate phosphate without necessarily being converted initially into nitric acid. This would therefore hold good both for the ammonia manuf....