Per Justice K. Shreedharan:

A nice question regarding the scope and ambit of Note 10 to Chapter 28 of the Central Excise Traiff arises for consideration in this appeal. For a proper understanding of this question a short resume of facts is necessary.

2. The appellants before us are engaged in the activity of distributing An hydrous Ammonia and Ammonia in aqueous solution known as liquid Ammonia. They receive Ammonia in compressed form in tankers from the manufacturer of Ammonia on payment of Central Excise duty under Chapter sub-heading 2814.90 of the Central Excise Tariff. The said Ammonia is off-loaded from the tankers into cylinders of lesser capacity. The cylinders filled with the Ammonia are sold to various purchasers for meeting their requirements. The cylinders in which the Ammonia is sold are returnable by the customers for refilling. On the allegation that they were purchasing Ammonia in bulk and repacking the same in retail/marketable packs for sale to consumers which amounted to manufacture, Show Cause Notice dt. 14.8.97 was issued demanding duty of Rs. 7,24,454/-. This duty demand was in relation to the quantity of Ammonia cleared during the period from 1.3.97 to 24,