Customs, Excise and Gold Tribunal - Delhi
M/S. Alcobex Metals Ltd. vs Cce, Jaipur on 25 January, 2001
ORDER
K. Sreedharan
1. In this appeal appellant prays for waiver of pre-deposit of the amount of duty imposed by the authorities below for entertaining the appeal. A duty demanded against the appellant comes to Rs. 71,489.25.
2. Short facts necessary for understanding the dispute raised in the appeal are as follows:-
Appellants are engaged in the manufacture of Zinc. Zinc is manufactured out of Zinc Ash and other residuaries. Zinc ash when reacts with sulphuric acid forms zinc sulphate solution, said solution is subjected to electrolysis. During this process, the metallic zinc is deposited on the cathodes. When the quantity of zinc in the zinc sulphate solution gets reduced, fresh zinc ash is added to it to generate zinc sulphate solution having more concentration. From such zinc sulphate solution zinc is extracted by electrolysis. Zinc sulphate solution prepared by the appellant was treated as an intermediary product assessable to Central Excise duty, since duty on that product was not paid. Show cause notice was issued which culminated in the order impugned in this appeal.
3. Learned Counsel representing the appellant submits that zinc sulphate solution is not a marketable commodity. Zinc sulphate in granule form or powder form alone are marketable. So according to learned Counsel, the view taken by the department that zinc sulphate solution is a marketable. So according to learned Counsel, the view taken by the department that zinc sulphate solution is a marketable commodity is not sustainable. Be that as it may. Learned Counsel submitted before us that to begin the process and extracting zinc in the factory of the appellant, zinc sulphate solution was procured by the appellant from M/s Hindustan Zinc Limited. This shows that zinc sulphate solution is a marketable commodity and zinc sulphate solution is a intermediary product in the process of extracting zinc form zinc ash and other material. So prime-facie we feel that the appellant can not be exonerated from the liability of making a pre-deposit as contemplated under Section 35F of the Act. Accordingly, we direct the appellant to deposit a sum of Rs.50,000/- within four weeks from today for entertaining the appeal. On such deposit being made, respondent should not take any action for recovering the amount covered in this appeal. Postage to 28. 2.2.2001 for reporting compliance.
(Pronounced & dictated in the open Court).