Date:12/04/2006 URL: http://www.thehindubusinessline.com/2006/04/12/stories/2006041203800100.htm

Back Tata Chem to contest Central Excise order

Our Bureau

Mumbai , April 11

Tata Chemicals Ltd (TCL) today informed the BSE that it would be contesting an order from the Central Excise demanding duty of Rs 278.35 crore along with penalty of an equal amount.

The order was issued by the Commissioner, Central Excise Haldia Commissionerate, Kolkata and covered the period from September 1, 1999 to September 30, 2005.

"The contention of the excise department is that Neutral Filter Cake (NFC) and Spent Sulphuric Acid (SSA) generated during the course of manufacture of an excisable product (STPP) has been used as an input for the manufacture of a non-excisable product (DAP & SSP),'' a company statement said.

According to it, TCL is of the view that the order is unsustainable. "The company would be contesting the issue before the appropriate forum and has also been legally advised that its stand would be upheld. Accordingly, the company does not expect any liability on this account,'' it said.