EXPORT IMPORT DATA
  
Date 18-Apr-2007 Issuing Authority Central Excise
Circular Number 848/2007 Authority Type Circular
Subject Withdrawal of circulars 44/89-CX.3 dated 19.7.1989 and 56/89-CX.3 dated 21.9.1989

Circular No. 848/06/2007-CX

Circular No. 848/06/2007-CX

 

F.No.109/2/2004-CX.3

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

New Delhi,18th April, 2007

 

Subject:- Withdrawal of circulars 44/89-CX.3 dated 19.7.1989 and 56/89-CX.3 dated 21.9.1989- regarding.

 

I am directed to invite your attention to Boards Circular No. 44/89-CX.3, dated 19.7.1989, wherein  the field formations were instructed that no central excise duty is to be paid on prilled ammonium nitrate obtained from melt ammonium nitrate, and that no modvat of such duty, even if paid is to be allowed, in pursuance of Tribunals order in case of M/s. Anil Chemicals Pvt. Ltd. [1985 (21) ELT.889(T)].  In another Circular No. 56/89- CX-3, dt. 21.9.1989, it was instructed that the instructions issued vide Circular dt. 19.7.89 would apply, mutatis mutandis to the process of conversion of ammonium nitrate melt into crystalline coated ammonium nitrate.

 

 2.          Subsequent to this, the larger Bench of the CESTAT in the case of Supreme Chemicals Works Vs. CCE, Jaipur [2000 (119) ELT 707 (Tribunal-LB)] had held that ammonium nitrate in the form of fine powder particles obtained from crude lumps of ammonium nitrate, damaged calcium ammonium nitrate (CAN) and ammonium nitrate  melt satisfy the two tests one of manufacture and other of marketability, for subjecting any goods to levy of excise duty.  The Tribunal further held that the statement of law laid down in CCE, Aurangabad Vs. Anil Chemicals Pvt. Limited must be held to be incorrect.  Based on the law laid down by the larger Bench of the Tribunal, the regular Bench has decided accordingly the appeals in the case of M/s. Supreme Chemicals works vide its final order No. 360-62/2000-C dt. 03.8.2000. 

3.       It has been decided by the Board to accept the above said order of larger bench dated 7.6.2000, and final order of the tribunal dated 3.8.2000 on this issue. Consequently, Board has decided to withdraw the circulars Nos. 44/89-CX.3, dated 19.7.1989, and 56/89-CX.3, dated 21.9.1989, as they are inconsistent with the settled position of law.  Therefore, the Circulars Nos. 44/89-CX-3 & 56/89-Cx-3 may be treated as withdrawn.

 

4.       Pending disputes, if any, may be decided accordingly.

 

5.       Trade and field formations may be suitably informed.

 

6.       Hindi version will follow.                                                                          

                                                            Yours faithfully,

 ( Dilip Goyal )

 Under Secretary (CX.3)

 

Back To Top