TaxTMI 
TaxTMI 
2008 (8) TMI 267
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....was admitted by framing the following substantial question of law, vide order dated 9-1-2007:- "Whether the benefit of Notification No. 81/75 dated 22-3-1975 was available to the assessee who had used Sulphuric acid captively in the manufacture of phosphoric acid which was later on cleared on payment of duty to M/s. IFFCO. Keeping in view the Clarification Circular dated 12-12-1986 issued by the Board, for the period in question?" 2. The factual aspect of the matter, which is not in dispute is, that the assessee is a manufacturer of sulphuric acid, and it was used subsequently in manufacture of phosphoric acid, which phosphoric acid was cleared on payment of duty to M/s. IFFCO. On these facts different show cause notices were issued to th....
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.... to use it in the manufacture of fertilizers, should himself produce the fertilizers also, rather the 2nd proviso to the said Notification provides, that the factory of production of sulphuric acid and that of fertilizers can be different, and that they may not be denied the benefit of the above said Notification, merely on the ground, that they do not use sulphuric acid in the manufacture of fertilizers themselves, but sell phosphoric acid in which they have used sulphuric acid. Various other grounds were also taken. 4. The learned Assistant Collector, vide order-in-original dated 31-12-1980, confirmed the demands of all the 16 notices, and also confirmed the special excise duty, leviable on the sulphuric acid, manufactured and used in ma....
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....as used the phosphoric acid, for the manufacture of fertilizers, and it was held that the answer to this is clearly in negative, as what has been cleared is phosphoric acid, to which Notification No. 81/75 is not applicable, and secondly at the stage when sulphuric acid was used by the assessee for manufacturing of phosphoric acid, no exemption was available to sulphuric acid, since at that stage, it could not be established, that the phosphoric acid, which would be cleared on the payment of duty, and sold to 3rd party, would ultimately be used in the manufacture of fertilizers. With these findings, the appeal was dismissed. 6. The learned Tribunal in appeal found, that the Notification No. 81/75 provides exemption to Sulphuric Acid, which....