2003 (4) TMI 130 - SC - Central Excise

Burnt Dolamite - Whether the assessee was entitled to the benefit of the Notification No. 217/86-C.E. for burnt Dolamite used in steel making furnace for fettling banks and bottoms or not - Held that - It has been pointed out that manufacturing steel, acidic oxides are formed. This acid is required to be neutralized, otherwise it affects the banks and bottoms of the furnace. For neutralizing the acid oxides which are formed, burnt Dolamite is used. This burnt Dolamite is used within the factory of production in relation to the manufacture of final product namely, steel. Therefore, the Tribunal rightly arrived at the conclusion that the respondent is entitled to get the benefit of exemption Notification No. 217/86(C). It is true that acidic oxide, if not neutralized would affect the banks and bottoms of the furnace, but that would not mean that burnt Dolamite is used only for protecting the damage to the furnace. It is required to be used so as to neutralise the acid oxides formed while manufacturing steel and, therefore, burnt Dolamite is used in relation to manufacturing process for which the respondent is entitled to have benefit of exemption notification. Hence, the judgment and order passed by the Tribunal cannot be said to be in any way illegal or erroneous - Decided against Revenue.

Summary

The Supreme Court dismissed the appeal by the Department regarding the entitlement of the assessee to the benefit of Notification No. 217/86-C.E. for burnt Dolamite used in steel making furnace. The Tribunal's decision was upheld as burnt Dolamite is used in the manufacturing process of steel to neutralize acid oxides, entitling the respondent to the exemption.