K. Prakash Anand, Member (T)

1. In this matter, the appellants are alleged to have used 671.234 Metric Tonne of Low Sulphur Heavy Stock (LSHS for short) which was brought at nil rate of duty under Notification No. 147/74, dated 30-10-1974 by following procedure under Chapter X of the Rules otherwise than in the manufacture of fertilizers as feed stock. This LSHS was used by the appellants in the manufacture of Ammonia and such Ammonia was used by them internally for industrial purposes.

2. Appellant's stand is that the impugned LSHS was utilized by them in the manufacture of fertilizer through Ammonia and, therefore, it has to be deemed to be used as raw material in the manufacture of fertilizer.

3. The department's case is that under Notification No. 147/74, the use of LSHS was permitted duty free only if it is used as feed-stock in the manufacture of fertilizers, the expression "feed stock" means "primary material introduced into a plant for processing" as defined in the Glossary of Petroleum Terms IS : 4639/68. In the order in original, it has been held that feed stock will, therefore, mean the raw material which is processed into a finished product.

4. Heard Shri Banerjee, adv