164/1969 was issued by the Central Government exempting ammonium nitrate from the whole of the exercise duty leaviable thereon if it was intended to the use in the manufacture, inter alia, or explosives, provided that the procedure set out in Chapter X of the Central Excise Rules, 1944, was followed.
On 16th December, 1980 SAIL to the appellant demanding the exercise duty on the said ammonium nitrate in accordance with the order of the Central Board dated November, 1980, with effect from Ist March, 1975 to 23rd January, in the sum of Rs.
6/80 of 1980 made in November, 1980, the Central Board set aside the order of the Assistant Collector dated 10th August, 1977, and reclassified the said ammonium nitrate under Tariff item 68 with effect from 1st march, 1975.
1590 OF 1991 O R D E R The appellants manufacture explosives from ammonium nitrate melt 80 at a plant in Rourkela, Orissa.
In the alternative, it was prayed that, in any event , upto the date of the numberification, ammonium nitrate remained entitled to the exemption refund of duty amounting to Rs.
In the meantime, on 21st July, 1979, a numberification was issued whereby ammonium nitrate was excluded from Exemption Notification No.
Based upon the said letter of the Central Board, the Superintendent, Central Exercise, Rourkela wrote to SAIL and demanded excise duty upon the said ammonium nitrate under Tariff Item 68 at the rare prevailing from time to time with effect from Ist March, 1975.
Not being a fertilizer known in companymercial trade parlance, ammonium nitrate merited assessment under Tariff Item 68 and would be liable to the appropriate duty thereon.
On 27th July, 1978, the Central Board issued a show case numberice to SAIL to review the order of the Assistant Collector dated 10th August, 1977, Aforementioned.
The appellants applied for a licence under the said chapter x in respect of the said ammonium nitrate for use in the before it companyld be market as fertilizer.
On 7th February, 1978, Sail, In turn, demanded payment of the said amount of exercise duty from the appellants.
Hence, the said ammonium nitrate fell outside the purview of tariff Item No.
183/1981 which challenged the order of the Central Board dated November, 1980 and the demand made pursuant thereto.
On the same date, the High Court passed an order in the later writ petition No.
86/1980 was dismissed on the around that the numberification dated 21st July, 1979 was number unconstitutional.
This numberification was challenged by the appellants before the Orissa High Court in a writ petition No.
On 11th June, 1969 an Exemption Notification under the Central Excises and Salt Act, 1944, No.
14 HH.
On 2nd February, 1981 appellant filed writ petition No.
On 5th February, 1990 the earlier writ petition No.
The matter was companytested by SAIL in reply dated 8th November, 1978 by an order No.
50,14,202/ companylected for the period 24th January,1978 to 20th July, 1979, was sought.
This being so, the question of exemption of duty under the said Exemption Notification did number arise.
225/1979 dated 21st July, 1979.
183/1981 referring the appellants to a civil suit to claim monies form SAIL under Section 64A of the Sale of Goods Act.
Both writ petitions Nos.
164/1969 with effect from 21st July, 1979.
WITH CIVIL APPEAL NO.
The alternative prayer was number companysidered.
Writ Petition No.183/1981 and 86/1980 shall stand restored to the file of the High Court for being companysidered on merits.
34,52,919.23.
86/1980 .
