K. Prakash Anand, Member (T)

1. These are two matters on the same issue relating to the same appellants and, therefore, these are being disposed of by this common order. The allegation is that M/s. Fertilizer Corporation of India have used sulphuric acid in the manufacture of phosphoric acid, which is then used in the manufacture of Sodium Hexa-Meta Phosphate (SHMP for short). The department alleged that the appellant company suppressed the above fact and instead declared to the department that sulphuric acid was being used in the manufacture of fertilizers and claimed the benefit of Notification No. 81/75.

2. Appellants have claimed that they had plainly stated the facts in two schedules attached to their application for licence for the manufacture of SHMP and phosphoric acid.

3. In the order-in-original, the Collector has held that the use of sulphuric acid in the manufacture of phosphoric acid cannot be considered as use of the sulphuric acid in the manufacture of fertilizer because phosphoric acid is an independent commodity, known to the market as such, and has distinct use from fertilizer, the two items falling under separate Central Excise Tariff Items.

4. An interesting as