I was trying to derive the Bernoulli equation from the above equation
for time independent flow
If you are studying something time independent then you just let $\frac{\partial}{\partial t}$ to be zero:
$$
\frac{\partial}{\partial x_j} \left [ \frac{1}{2} \rho v^2 v_j + \rho h v_j + \rho \phi v_j \right ]=0
$$
Next step is to get rid of $\rho$. Bernoulli's equation doesn't contain $\rho$, does it? We'll need mass balance for the stationary state:
$$\frac{\partial \rho v_j}{\partial x_j} = 0$$
which together with the first equation leads to:
$$
\rho v_j \frac{\partial}{\partial x_j} \left [ \frac{1}{2} v^2 + h + \phi \right ]=0
$$
Now one should recall that Bernoulli's law is valid only along streamlines/pathlines, which do coincide for a steady flow. If something called $A$ is constant along the vector field $\boldsymbol v$, then it should suffice the equation
$$v_j \frac{\partial A}{\partial x_j} = 0$$
Actually it is just a derivative of $A$ along the vector field $\boldsymbol v$ --- if the derivative is zero then $A$ is constant along the vector field.
Thus we got the Bernoulli's law:
$$
\frac{1}{2} v^2 + h + \phi = const
$$
along the streamline/pathline for the stationary case.