Per P.C. Jain :

The two respondents herein are manufacturer of meat and meat products. For preservation of meat they use dry ice i.e. solidified CO2 gas. There is also a notification no. 7/65-C.E. dt. 30th January 1965 which states that if dry ice is used for industrial purposes it is exempted from duty under the erstwhile tariff item 14H. The department observed that dry ice so obtained was used for preservation of meat during transportation from Delhi to Bombay and abroad. It was therefore alleged by the Revenue that the respondents would not be entitled to the benefit of notification no. 7/65-CE. Consequently, they were asked to show cause as to why a duty of Rs. 3,17,424.15 and Rs. 11,943.75 for the relevant periods be not recovered from them. The aforesaid demands were proposed in show cause notices both dated 24.9.82.

On adjudication, the aforesaid amounts of duty were dropped by the Addl. Collector.

CBEC in exercise of its powers u/section 35E of the Central Excise Act, 1944 has raised the following points which according to it arise out of the said impugned order passed by the Additional Collector for determination by this Tribunal. These are as follows :-