1997 (3) TMI 94

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....and instead it started using the calcium carbide for manufacturing acetylene gas in their acetylene gas plant. Since the entire quantity of calcium carbide produced by the company is consumed in the manufacture of acetylene gas, there is no question of selling calcium carbide to outside parties. The calcium carbide produced in the company's factory is tapped from the furnace in liquid form and is placed in small trolly trays, where it is allowed to cool and solidify and thereafter it is broken into cakes of desired sizes. 2.The contention of the company before the excise authorities and also the High Court was that the calcium carbide manufactured by it was only an intermediary product which was used for generation of acetylene gas in th....

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.... by order dated 16th September, 1975, have, however, held that calcium carbide manufactured by the company was assessable under the Central Excise Act. The company, therefore, moved a writ petition in the Delhi High Court for quashing these orders. 4.The Union of India had opposed the writ petition on the ground that what is manufactured by the company is calcium carbide as mentioned in Tariff Entry No. 14AA of the First Schedule to the Act and as such is liable to ad valorem duty. This product which was actually sold in the market till 1967 by the company and even thereafter is "goods" within the meaning of the Act. The applicability of the Calcium Carbide Rules to this product did not arise as the company did not transport the calcium ....