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TMI Blog1988 (1) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... nment exempted all excisable goods (hereinafter referred to as the said goods ), on which the duty of excise is leviable and in the manufacture of which any goods falling under Item No. 68 of the First Schedule to the Central Excises and Salt Act, 1944 (hereinafter referred as the inputs ) have been used, from so much of the duty of excise leviable thereon ,as is equivalent to the duty of excise already paid on the inputs. The Notification also envisages that the procedure set out in the Appendix to the Notification is to be followed and that nothing contained in this notification shall apply to the said goods which are exempted from the whole of the duty of excise leviable thereon or are chargeable to nil rate of duty. According to claus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n-original No. 1/83 and 2/83, both dated 17/18-3-1983, the Superintendent of Central Excise has inter alia held that in the process of manufacture of Acetate Yarn/Staple Fibre/Tow from the declared inputs Acetaldehyde and Acetic Acid certain intermediate products, as given below, were manufactured by the appellants and one of the intermediate products is Cellulose Acetate falling under Tariff Item 15A(1) :- As per Order-in-Original No. 1/83 Acetic Acid (T.I. 68)1. Acetic Anhydride (T.I. 68) Exempted under Notification No. 118/75-C.E., dated 30-4-1975. (T.I. 68)Acetic Anhydride 2. + Bleached Cotton Linter (T.I. 68) Cellulose Acetate [(T.I. 15A(1)] Exempted under Notification No. 118/75-C.E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fit of duty paid on acetaldehyde/acetic acid has been sought for under Notification No. 201/79, as amended. The inputs that are used for the manufacture of acetic yarn/fibre etc. fall under Tariff Item 15A. Notification No. 201/79 gives the benefit of duty paid on the inputs only when the inputs fall under Tariff Item 68 and are used in the manufacture of Tariff Items 1 to 67. The input benefit cannot be entertained in this case, for the input falls under T.I. 15A as goes into the manufacture of T.I. 18. Hence appellants plea that the benefit of Notification No. 201/79 should be extended to them is not legally permissible. Appeal has no merits-and consequently is rejected. 3. During the hearing before us Shri Chandra Sekharan, learned Ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . If a substance or chemical is used and consumed in order to produce paper or to impart to it certain qualities and properties, it can be said that the chemical or substance was an input or a material in the manufacture of paper. In the light of the above proposition the Tribunal has held that lime, alum, salt cake and sulphamic acid were raw materials in the manufacture of paper and paper board and hence, the benefit of Notification No. 201/79-C.E. was admissible to these substances used and consumed in the manufacture of paper. In the decision reported in 1983 E.L.T. 1263 (Collector of Central Excise, Nagpur v. Ballarpur Industries Ltd., Chandrapur), this Tribunal has held that Sodium Sulphate was used for the manufacture of sulphate pul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration, Mirzapur, reported in 1987 (28) E.L.T. 529 (Tribunal), this Tribunal has held that for the purpose of set-off of duty under Notification No. 201/ 79-C.E. as amended by Notification No. 105/82-C.E. it is not necessary that raw material should be constituent of the final product. Utilization and consumption in the process of manufacture is enough. Therefore, the Tribunal has held that crystallite, aluminium, fluoride, borax and lime used in the manufacture of aluminium are eligible for set-off in terms of these notifications. 5. The Orders-in-original passed by the Assistant Collector shows that in the continuous process of manufacture of Acetate Yarn/Staple Fibre/Tow, the appellants have put in Acetaldehyde falling under Tariff Ite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s falling under Item 68 in the manufacture of Acetate Yarn/Staple Flbre/Tow falling under T.I. 18 and hence the benefit of Exemption Notification No. 201/79-C.E. is admissible to them, is supported by various decisions relied upon by the learned Advocate which have been discussed in paragraph 4 (supra). 6. In the light of our above discussions, we hold that the benefit of Notification No. 201/79-C.E., dated 4-6-1979 should be extended to the Acetate Yarn/Staple Fibre/Tow in the manufacture of which the appellants used Acetal Dehyde and Acetic Acid as starting raw materials, irrespective of the fact that in the continuous process of manufacture some other intermediate products arose which were not cleared as such from the factory but were ..... X X X X Extracts X X X X X X X X Extracts X X X X
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