2002 (7) TMI 308 - AT - Central Excise

Summary

Issues:
1. Excisability of Soda Ash Solution
2. Eligibility of Soda Ash Solution for exemption under Notfn. No. 217/86

Excisability of Soda Ash Solution:
The appellant raised two issues in the case: excisability of Soda Ash Solution and its eligibility for exemption under Notfn. No. 217/86. The appellant did not press the excisability issue but contested the denial of exemption eligibility by the Department. Referring to a Supreme Court decision, the appellant argued that the Department was unjustified in denying the exemption eligibility for Soda Ash Solution. The Supreme Court precedent highlighted that the use of a particular item need not be direct in the manufacturing process to qualify for exemption.

Eligibility of Soda Ash Solution for Exemption:
The Commissioner's findings were challenged based on the Supreme Court decision, which indicated that the findings were not legally sustainable. The Revenue argued that the wordings of Notfn. No. 217/86 differed from the one considered by the Supreme Court, thus justifying the denial of exemption in the instant case. However, the Tribunal found merit in the appellant's arguments, emphasizing that both notifications were related to or in connection with the manufacture of excisable goods. The Tribunal referenced the Supreme Court's observations on the essentiality of effluent treatment in the manufacturing process, concluding that the Soda Ash Solution used was integral to the manufacturing process and thus eligible for exemption under Notfn. No. 217/86.

Conclusion:
Ultimately, the Tribunal sided with the appellant, aligning with the Supreme Court's precedent and rejecting the Revenue's arguments. The Tribunal emphasized the importance of effluent treatment in the manufacturing process, stating that the Soda Ash Solution used was indeed part of the manufacturing process of the final excisable product. As a result, the appeal was allowed in favor of the appellant, highlighting the significance of environmental considerations and pollution control in determining exemption eligibility under the relevant notification.