2019 (10) TMI 1289

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....ith applicable interest and equal penalty for the period 21.07.2006 to 31.03.2007. 2. Briefly stated, the facts of the case are that the appellant MCC PTA India Corporation Pvt Ltd, is engaged in the manufacture of 'Purified Terephthalic Acid' (PTA) classifiable under Tariff sub heading 29173600 of the Central Excise Tariff which attracts central excise duty of 16%. Notification no. 37/2006-CE dated 20.07.2006 was issued to exempt excise duty beyond 8% on 'Pure Terephthalic Acid', so as to provide effective rate of 8% excise duty as against 16%. Accordingly, the appellant started discharging central excise duty of 8% on 'Purified Terephthalic Acid' (PTA), by availing the aforesaid exemption benefit with necessary disclosures in the monthly....

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.... chemical and neither the central excise tariff nor HSN lay down as to the percentage / standard of the concentration of terephthalic acid which has to be there after carrying out the process of purification. He submitted that in absence of any grade or standard being set out in the Excise Tariff, the standards accepted in the commercial world would have to be the criteria for establishing what is PTA for the purpose of exemption notification. 4.2 The Ld. Counsel also referred to the certificate dated 16.11.2018 obtained by the appellant from the Industry Institute Partnership Cell, University of Jadavpur on the subject which has been given after due analysis and testing of appellant's product which states that there is bound to be insigni....

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....phthalic Acid' i.e. terephthalic acid of 100% purity as against the one which is purified. We further find that the Ld. Commissioner has categorically accepted in his order that no such purity percentage has been prescribed in the HSN and hence, resort has to be taken to market parlance i.e. the way product is understood in its ordinary sense. 7.2 On perusal of the Certificate issued by the Chemical Engineering Department of the Jadavpur University after a detailed analysis of purification process applied to terephthalic acid, it has been stated that Purified Terephthalic Acid manufactured by the appellant can be deemed as 'Pure Terephthalic Acid' as used interchangeably and synonymously with the term 'Purified Terephthalic Acid' in the se....