2002 (7) TMI 308

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....sing the issue with reference to the excisability of Soda Ash Solution. Nevertheless, the Department is not justified in denying the eligibility of Soda Ash Solution to the exemption contained in Notfn. No. 217/86. Issue with reference to the similar wordings of Notfn. has already been considered by the Supreme Court in the case of Indian Farmers Fertiliser Co-op Ltd. v. CCE, Ahmedabad reported in 1996 (86) E.L.T. 177 (S.C.). 2. In that case it was held that "raw naphtha used to produce ammonia which in turn is used in off-site plants namely water treatment plant, steam generation plant, inert gas generation plant and effluent treatment plant also eligible for such exemption since the said notification does not require that ammonia sh....

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....xemption in terms of Notfn. 217/86 in the instant case. As per the wordings of Notfn., the assessee must use the item directly in the process of the manufacture of excisable goods. 4. On going through the submissions made by the both sides and case law referred to above, we find that there is strong force in the arguments advanced on behalf of the assessee. Both the notifications dealt with in or in relation to the manufacture of the excisable goods. We are not convinced with the arguments advanced on behalf of the Revenue. But wordings of the said notifications are different. The observations made by the Supreme Court particularly in Paras 9 and 10 of the said decision is relevant in this context and same is as under : - "9. Th....