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TMI Blog1985 (2) TMI 188X X X X Extracts X X X X X X X X Extracts X X X X ..... of Central Excise (Appeals), Madras; (in appeal at Sl. No. 1) and (ii) set aside the order of the Collector of Central Excise (Appeals), Madras, dated 5-4-1984 in No. 31 /84 (H) (D), in Appeal at Sl. No. 2 above. 2. These appeals coming up for orders upon perusing the records and upon hearing the arguments of Shri P.N Menon, Representative and Jogayya Sarma, Advocate for the appellants and upon hearing the arguments of Shri JM.K. Sekhar, Senior Departmental Representative for the respondent, the Tribunal makes the following: 3. [Order]. - As the two appeals though directed against two different orders of the Collector of Central Excise (Appeals), Madras namely. No. 191/83 (B) dated 30-7-1983 and No. 31/84 (H)(D) dated 5-4-1984 respec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 30-7-1983 referred to supra (now dealt in No. 399/83). 5. On a direction from the Collector of Central Excise, Hyderabad under Section 35E(2) of the Central Excises and Salt Act, 1944 the Assistant Collector of Central Excise, Kurnool filed an appeal dated 30-11-1983 against the order of the Superintendent allowing the credit in respect of other nine items. By order No. 31/84 (H) (D) dated 5-4-1984 the Collector (Appeals) allowed the appeal of the Assistant Collector of Central Excise, Kurnool, and set aside the order of the Superintendent, Kurnool, III Range in respect of the other nine items (now dealt in appeal No. 157/84). He also directed the mills to pay back the credit of duty wrongly taken by them under the impugned order eithe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no such notice had been issued by any departmental authority. 7. In reply, following decision of this Tribunal in the case of Seshasayee Paper and Boards Ltd. v. Collector of Central Excise, Coimbatore. - Appeal No. ED (MAS) 58/84 dated 16-1-1984 was cited by Sr. D.R.-Sr. D.R. accepted the plea on behalf of the appellant that the following items can be granted the benefit of Notification No. 201/79: (1) Ferric Alum (used for paper manufacture but not in the purification of water) (2) Non-ferric alum (3) Rosin (4) Depsanil V . In respect of Alfloc 11, Alfloc 31 and Hydrazine Hydrate, he pointed out that they are merely boiler chemicals concerned to keep the boiler in good order rather than used directly in the manufacture of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... maintaining sulphidity of pulp; the material is an essential chemical in the manufacture of paper. This too is entitled to the benefit of the notification. Sulphamic Acid is claimed to be used for bleaching pulp either in the chlorination of air while adding sodium hydrochloride. It is used for avoiding the degradation, of properties found that is to retain the viscosity of the pulp. Acetic Acid is said to be used to dissolve dyes in stock preparation section which is added to pulp. Obviously these are essential chemicals in the processing of pulp or paper and hence would be entitled to the benefit of the notification. 10. So far as Alfloc 11, Alfloc 31 and Hydrazine Hydrate are concerned, it is noted that they are used for avoiding scal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act. What we ordered deals with the question of money taken as wrong credit rather than a demand for payment of duty short levied or erroneously refunded. Para 4 of Appendix to the Notification No. 201/79 clearly lays down that if credit of duty paid on inputs has been taken wrongly, the credit so taken may be disallowed and the amount so disallowed shall be adjusted in the credit account or the account current or by a cash recovery. Hence the plea on behalf of the appellant is not maintainable in law. 1.4. Thus the direction of the Collector in so far as it related to the four items for which we have disallowed the benefit of Notification No. 201/79 is correct in law. 15. In the result the appeal No. 157/84 insofar as it relates to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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