2008 (5) TMI 501

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..... Shri Raja Dass, JDR, for the Respondent. [Order per : T.K. Jayaraman, Member (T)]. -  In terms of the impugned Order-in-Original No. 12/2007 dated 14-9-2007/21-9-2007 passed by the Commissioner of Central Excise, Mangalore, the appellants are required to pre-deposit the following amounts of duty. (a)     Duty of Rs. 2,46,36,000/- (Central Excise Duty) (b)&....

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.... the Carbon Dioxide produced as a by-product is used in the manufacture of Ammonium Bicarbonate. The department has taken a view that the Carbon Dioxide and Ammonium Bicarbonate manufactured by the appellants are not fertilizers. Therefore, according to Revenue the entire raw Naphtha procured has not been intended for the manufacture of fertilizers. Theoretically they have calculated the raw Napht....

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....n unintended by-products emerge one cannot demand duty on the Naphtha and one cannot say that Naphtha was not used for the manufacture of fertilizers. The submission of the learned Advocate is that the entire Naphtha procured duty free has been used only for the intended purpose, which is manufacture of fertilizers. The separation of Carbon Dioxide is a technological necessity in the process. It i....

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....ttention was also invited to another Clarificatory Circular No. 70/2001-Cus. dated 27-11-2001. 6. On a very careful consideration of the issue, we find that prima facie the appellant has a strong case. When Carbon Dioxide arises as a technological necessity, we cannot say that the appellant used raw Naphtha only to produce Carbon Dioxide, which in turn was used to produce Ammonium Bicarbon....