TaxTMI 
TaxTMI 
2001 (1) TMI 88
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....which exemption notifications have been issued. 3.The Gujarat Narmada Valley Fertilizers Co. Ltd. had applied in 1983 for a licence in Form-L6 so as to obtain without payment of duty excisable goods, namely, LSHS which was to be used for the industrial process of manufacture of fertilizers. In the said application, it was stated that 30,000 metric tonnes of LSHS was to be used as feed stock per month. The application also gave the manner of manufacture and it was inter alia stated that Ammonia was manufactured using furnace oil and LSHS as feed stock along with oxygen and steam by employing partial oxidation process. Explaining the process further, it was stated that as a result of employing the said partial oxidation process, gases are pr....
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....urnace oil or heavy petroleum stock is so used, and the(ii) procedure set out in Chapter X of the Central Excise Rules, 1944, is followed." 6.As far as Notification No. 127/1988 is concerned the relevant part, namely item Nos. 56 and 57 in the Table of the said notification is as follows :- 56. Residues of petroleum oils or of oils obtained from bituminous minerals, including heavy petroleum stock low sulphur heavy stock and other residual fuel oils falling under heading No. 27.13 of the said Schedule. NIL Intended for use as feed stock in the manufacture of fertilizers. 57. Residues of petroleum oils or of oils obtained from bituminous minerals, including heavy petroleum stock low sulphur heavy stock and other residual fuel oils fa....
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....v. Collector of Central Excise, Patna reported in [2000 (122) E.L.T. 343]. In that decision, the Patna High Court had come to the conclusion that even that portion of LSHS which had been used for generating steam which in turn had resulted in the manufacture of liquid ammonia would be entitled to the benefit of the exemption notification. 10.Reading the three notifications, it is clear that LSHS is entitled to exemption either wholly or in part if it is used in the manufacture of fertilizers. The said entries 56 and 75 are similar to entries 25 and 26 of the exemption Notification No. 75/1984 which after amendment inter alia related to furnace oil. In item 25 of this notification there was complete exemption from duty in relation to furnac....
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....s as per the Indian Standards Institute feed stock means "primary material introduced into a plant for processing". 13.The aforesaid application for licence of M/s. Gujarat Narmada Valley Fertilizers Co. Ltd. clearly indicated that LSHS was to be used as feed stock and that was to be used along with oxygen and steam for employing partial oxidation process. In the said application, it was not indicated that LSHS was to be used in the production of steam which in turn was to be employed in the manufacture of liquid ammonia. LSHS, according to the said application, was to be used as feed stock in the manufacture of fertilizers. 14.As is evident from hereinabove, LSHS has been used in two ways. Firstly, it had been used as feed stock in the o....