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TMI Blog1992 (7) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... se Tariff. They were availing the set-off of duty in terms of Notification No. 201/79 dated 4-6-1979 in respect of Oxalic Acid received by them as raw material for use in the manufacture of their finished excisable goods. The respondents were served with a notice requiring them to show cause as to why an amount of Rs. 3,648.52 availed by them as set off of duty in respect of Oxalic Acid used in the manufacture of their final product during the period 28-24982 to 20-12-1984 should not be recovered. Thereafter, vide his order dated 20th May, 1985 the Assistant Collector, Baroda confirmed the demand of duty amounting to Rs. 3,648.52 on the ground that set off availed by the respondents on Oxalic Acid used as input in the manufacture of their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he decision of the Supreme Court in the case of Collector of Central Excise v. Ballarpur Industries Ltd. reported in 1989 (43) E.L.T. 804 even when Oxalic Acid acts as a catalyst and does not form a part of the end-product it would be eligible for set off of duty in terms of Notification No. 201/79 dated 4-6-1979. 3. No one has appeared on behalf of the respondents who have desired that the contents of the Cross Objection filed by them may be taken into account while deciding the appeal. 4. We have examined the record of the case and considered the submissions made on behalf of both sides. It is seen that the question to be decided in this case is whether Oxalic Acid which acts only as a catalyst in the manufacture of Phenol Formaldehyd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the matter. The ingredients used in the chemical technology of manufacture of any end-product might comprise, amongst others, of those which may retain their dominant individual identity and character throughout the process and also in the end-product; those which as a result of interaction with other chemicals or ingredients, might themselves undergo chemical or qualitative changes and in such altered form find themselves in the end-product; those which, like catalytic agents, while influencing and accelerating the chemical reactions, however, may themselves remain uninfluenced and unaltered and remain independent of and outside the end-products and those, as here, which might be burnt up or consumed in the chemical reactions. The questi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt further emphasised, is so integrally connected with the ultimate production of goods that, but for that process, manufacture or processing of goods would be commercially inexpedient, articles required in that process, would fall within the expression in the manufacture of goods ...... 8. On a consideration of the matter, we are persuaded to the view that the Tribunal was right in its conclusion that Sodium Sulphate was used in the manufacture of paper as Raw material within the meaning of the Notification No. 105/82-CE dated 28-1-1982." 5. On the ratio of the decision quoted above it has to be held that Oxalic Acid which acts as a catalyst in the manufacture of Phenol Formaldehyde Resin but does not form a part of the final produ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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