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TMI Blog1993 (6) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... 1-4-1992 Appeal No. E/80/92-BOM O/A No. KVV/271 /91-BRD dated 25-10-1991 Appeal No. E/923/91-BOM O/A No. KVV/281 /91-BRD dated 25-10-1991 The issue involved is whether phosphoric acid added to the cane juice for purpose of meeting the deficiency of phosphate contents in the cane juice is eligible for modvat credit, in respect of payment of duty on the final product - crystal sugar. 2. Shri Doshi, the ld. Consultant appearing for the appellants, referred to this Bench decision in the case of Rahuri Sahakari Sakhar Karkhana Ltd. reported in 1993 (64) E.L.T. 501 (Tribunal) and pleaded that the present issue is squarely covered by the aforesaid decision and requested for allowing the appeals. 3. Shri R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the fact of P 205 content occurring naturally in sugarcane is dependent on various factors such as the nature of the soil, climatic condition etc. Hence, traditionally phosphoric acid is added to cane juice, where natural P 205 content was deficient in the cane juice for attaining proper degree of clarification and whiteness of crystal sugar. 5. In the light of the above factual position as is noticed from the handbook of Cane Sugar Engineering by E. Hugot, we have examined the impugned order, presumably passed, on the basis of Board s instructions. (i) The Assistant Collector holds that phosphoric acid is not an indispensable material for the commercial production of sugar and it is added only at times, where P 205 content is low in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dded to the product mix for achieving proper clarification of cane juice. Hence it goes as an input for the clarification of cane juice. Hence we cannot appreciate the stand taken by the Collector (Appeals) that the phosphoric acid is a tool or appliance. We also carefully considered the Board s clarification referred to by the ld. JDR. Though production of crystal sugar may be possible without addition of phosphoric acid in these cases, where cane juice has the required P 205 content, in a case where the cane juice does not have the desired level of P 205 content and on account of that phosphoric acid is necessarily to be added for purpose of clarification, it cannot be dismissed as not an input. What is required to be established is wheth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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