HYDERABAD AMMONIA & CHEMICALS (P) LTD. Vs. C.C.E., C. & S.T.
LAWS(CE)-2015-5-46
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on May 28,2015

Hyderabad Ammonia And Chemicals (P) Ltd. Appellant
VERSUS
C.C.E., C. And S.T. Respondents




JUDGEMENT

B.S.V.MURTHY,MEMBER (T) - (1.)The appellant is engaged in buying and selling of anhydrous ammonia falling under Chapter 28 of the Schedule to the Central Excise Tariff Act. Appellants purchased anhydrous ammonia in tankers from reputed ammonia manufacturers. The anhydrous ammonia purchased is duty paid and received in tankers and stored in tankers at a particular pressure. As and when appellants receive orders for supply of anhydrous ammonia, they sell the ammonia in the tankers themselves. However in majority of the cases, the appellants fill ammonia in cylinders in various capacities directly from the tankers and sell to the customers. During the process of filling anhydrous ammonia from tankers into cylinders, small quantity of anhydrous ammonia vapour get released which dissolved in water. Thus anhydrous ammonia dissolved in water is known as aqueous solution of ammonia/liquor ammonia which is also sold by the appellants in tankers/jerry cans. For the period from 1 -3 -1997 to 31 -3 -2001, proceedings had been initiated against the appellants on the very same ground viz. the activity of filling anhydrous ammonia from tankers into cylinders of varying capacity would amount to manufacture and dissolving anhydrous ammonia in water also amounts to manufacture. However the proceedings were dropped.
(2.)The present proceedings have been initiated on the ground that there is a change in the Tariff heading as well as in the Chapter Note.
(3.)The issues that are to be considered are: (a) the activity of filling of duty paid anhydrous ammonia from tankers into cylinders amounts to manufacture in terms of Chapter Note No. 9 to Chapter 28 or not; and (b) the activity of dissolution of anhydrous ammonia with water and getting aqueous ammonia or liquor ammonia amounts to manufacture or not.
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