The Hindu : Business : Tata Chemicals to contest Central excise order

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Wednesday, Apr 12, 2006

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Business

Tata Chemicals to contest Central excise order

Excise Dept. demands Rs. 278 cr. duty and an equal penalty

MUMBAI: Tata Chemicals on Tuesday said it would contest before an appropriate forum the Central Excise department order, demanding Rs. 278.35 crore duty and an equal amount of penalty from the company for using by-products of excisable goods in manufacture of non-excisable items.

The order passed by the Commissioner, Central Excise Haldia Commissionerate, Kolkata, was unsustainable in law and similar kind of issues were settled by various judicial pronouncements in favour of manufacturers or companies, Tata Chemicals told BSE on Tuesday.

The contention of the excise department was that neutral filter cake (NFC) and spent sulphuric acid (SSA) generated during the course of manufacture of an excisable product sodium tri poly phosphate (STPP) have been used as an input for manufacturing a non-excisable product like di ammonium phosphate (DAP) and single super phosphate (SSP).

The order covers the period from September 1, 1999 to September 30, 2005. The company produces excisable products such as STPP and sulphonic acid and non-excisable products like DAP and SSP. — PTI

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