SUPREME CHEMICAL WORKS Vs. COLLECTOR OF C. EX.

JUDGEMENT

(1.) THE issue referred to the Larger Bench in the above referred three appeals relates to the excisability and classification of the product known as Ammonium Nitrate (in short, AN).

(2.) THE facts giving rise to this issue lie in a narrow compass and may briefly be detailed as under:

(3.) THE appellants are engaged in the manufacture of AN in the form of fine powder particles. The material used by them for manufacturing this product consists of crude lumps of AN, damaged calcium ammonium nitrate (in short, CAN) and AN melt. All these inputs are firstly mixed up with the water and then aluminium bicarbonate is added in that mixture. Thereafter, the mixture is washed with the water to remove insoluble impurities like mud, etc. The aluminium bicarbonate added in the mixture, helps in removing calcium in the form of calcium carbonate and thereafter it is heated for evaporation of the water. By this process, the crystals of ammonium nitrate (in short, AN) are obtained and then grounded to convert them into powder particles. The inputs used in the process of producing AN are bought by the appellants from the fertiliser manufacturers like NFL, RCF, etc., and are duty paid.