1985 (3) TMI 284 - AT - Central Excise

Summary

Issues:
1. Eligibility for concessions under Notification No. 201/79 for Sodium Aluminate and Sulphate of Alumina.
2. Interpretation of raw materials for the manufacture of bleached or processed cotton fabrics.

Analysis:

Issue 1: The Assistant Collector of Central Excise decided that the appellants were not eligible for concessions under Notification No. 201/79 for Sodium Aluminate and Sulphate of Alumina used in paper manufacturing. The Assistant Collector noted that ferric alum is used for water processing, affecting cloth processing. The Collector of Central Excise (Appeals) upheld this decision, stating that the chemicals were not raw materials for cotton fabric production. The appellants argued that the chemicals aided in water purification and pH alteration, citing precedents where similar chemicals qualified for concessions under the same notification.

Issue 2: The Consultant for the appellants explained that the chemicals assisted in maintaining water pH for fabric bleaching, referencing Tribunal decisions supporting such usage. The Senior Departmental Representative contended that the chemicals were only for water purification, not direct fabric manufacturing. The Tribunal emphasized that the definition of "raw material" varies case by case, considering material nature, usage, processes, and economic factors. It was clarified that chemicals causing chemical reactions during manufacturing do not qualify for concessions. The Tribunal concluded that the chemicals in question were solely for water purification and not directly involved in fabric manufacturing, leading to the dismissal of the appeal.