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TMI Blog1988 (11) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 C. Then a liquid is obtained which is tapped from the furnance into trays which are mounted on wheels. The molten liquid is allowed to be air-cooled. The material obtained is Calcium Carbide in boulder (lump) form. This is taken to iron platform where it is hammered to pieces and it is conveyed to machines where it is seived to different sizes. This seived Calcium Carbide (CaC2) is packed into air tight drums for marketing and some quantity, after seiving in loose form is carried to their Acetylene Black plant in tankers of about 3 to 4 tonnes capacity, mounted on trailers, as and when required for the manufacture of Acetylene black. 3. The only raw material utilised in the manufacture of Acetylene black is CaC2 in naked form. After seiving the Calcium Carbide, no other process takes place, and it is either packed in air-tight drums or sent to their acetylene black plant. Therefore, after Calcium Carbide has been seived into different sizes, no further manufacturing process takes place, except packing that quantity which is meant for sale and consequently it follows that the manufacture has been completed and Calcium Carbide falling under Tariff Item 14AA, which is specific f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 532 (Tribunal) = 1986 (7) ETR 127 in the case of Ilac Ltd., Bombay. In the said case, it was held that Calcium Carbide produced by M/s Ilac Ltd. as an intermediate product and captively used in the manufacture of PVC resin and Chlorinated solvent was excisable under Tariff Item 14AA. He has also argued that the Calcium Carbide Rules, 1937 do not say that for captive consumption Calcium Carbide is required to be packed. He has stated that by Supreme Court s latest judgment in the case of J.K. Spinning and Weaving Mills Ltd. and Another v. Union of India and others, decided on 30-10-1987 and reported in 1987 (32) E.L.T. 234 (SC), the earlier judgment of Supreme Court in the case of Union Carbide (supra) -1986 (24) E.L.T. 169 (SC) and the judgment of Delhi High Court in the case of Delhi Cloth Mills (supra) -1978 E.L.T. (J 121) stand reversed. He has also relied on the judgment of Madras High Court in the case of Deccan Sugar and Abkhari Co. Ltd., Madras v. Union of India and others, decided on 26-6-1986 and reported in 1986 (26) E.L.T. 209 (Mad), in which it was held It is not in dispute that bagasse could be used as a fuel in its own plant and further bagasse has also the characte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spectacles, or orthopaedic aids. A particular specimen of each of the above may be of use only to a few persons or even to a single person. That does not mean that it would not be excisable, because ready-made garments as a class can be marketed. So also spectacles and orthopaedic aids are marketable as a class and each specimen would have commercial value with reference to the purchaser. So also the absence of a label would not affect the liability. 7. We have considered the arguments of both sides. The main argument of the learned advocate is that the Calcium Carbide captively consumed by the appellants in the manufacture of acetylene gas, the same being not packed in air-tight drums as required by the Carbide of Calcium Rules, is not marketable and hence not goods for levy of Central Excise duty. For this argument he has relied on the Supreme Court judgment reported in 1986 (24) E.L.T. 169 (SC) in the case of Union Carbide India Ltd. v. Union of India and Others (decided on 4-4-1986). The facts in that case were that M/s. Union Carbide India Ltd. (hereinafter referred to as the Company) were carrying on the business of manufacture and sale of, inter alia, flashlights (torc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uced by the appellants in the present case as reproduced in paragraph 2 (supra) shows that after seiving it is not subjected to any further process. Manufacture of Calcium Carbide is complete and it is in finished form at this stage. Tariff Item 14AA specifically covers Calcium Carbide. The product which arises after seiving is, therefore, squarely covered by this Tariff Item. This finished product is either used for captive consumption or sold in the market. These are the goods which are sold in the market. However, the goods which are sold in the market, are required to be packed in accordance with the provision of the Carbide of Calcium Rules. That does not mean that the Calcium Carbide which is captively consumed is not marketable and is not goods . There is no question of packing in air-tight drums, of the goods which are consumed captively for manufacturing acetylene gas. It cannot be said that the provision of packing as per the said rules applies to that quantity of Calcium Carbide which is captively consumed. We find no logic to uphold such a contention. The facts of the case covered by the Supreme Court judgment reported in 1986 (24) E.L.T. 169 (SC) are distinguishable f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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