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TMI Blog1993 (9) TMI 204X X X X Extracts X X X X X X X X Extracts X X X X ..... ss bottles which are used by them for being filled with aerated waters, their final product. In coming to the said conclusion, the Collector (Appeals) had set aside the Order-in-Original passed by the Assistant Collector of Central Excise, Calcutta D Division dropping demand for Central Excise duty. The Assistant Collector had accepted their plea that their excisable final product being described in the relevant Tariff Item with reference to each glass bottle containing 200 ml. etc., the process of washing the glass bottle before filling the contents is a process in relation to the manufacturing process. The Collector (Appeals), while dealing with the Appeal filed by the department, had referred to the submissions made by the respondents ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l to make the glass bottles usable for filling edible products as per mandatory requirement of Prevention of Food Adulteration Act, 1955 and such washing of glass bottles with caustic soda solution is a process incidental or ancillary to the completion of manufactured product. Under Tariff Heading 22.02, the dutiable product is aerated water in glass bottles containing specified quantities of the contents. Hence, caustic soda flake/lye are essential inputs for completion of the manufactured product since manufacture is not complete unless aerated water is filled in glass bottle as per the Tariff entry. It has, therefore, been pleaded that their Appeal be allowed setting aside the impugned order as far as the finding on the admissibility of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aded that their Appeal be allowed. 4. Heard, Shri B.B. Sarkar, learned Departmental Representative. 4A. We have considered the submissions. We fully agree with the contentions raised by the appellants. Modvat Credit is admissible for goods used in or in relation to the manufacture of the final products. The expression in relation to enlarges the scope and nature of use. The Collector s finding that the use of caustic soda lye/flakes are for washing glass bottles and not in the actual manufacture of aerated water. The combined effect of Section 2(f) regarding the definition of manufacture and the specific Tariff sub-heading for Aerated Waters, prescribing the rate of duty for aerated water for each bottle containing quantity between sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt in Collector of Central Excise v. East End Paper Industries Limited reported in 1989 (43) E.L.T. 201. The principles laid down therein regarding the scope of the expression use in the manufacture will equally apply in the present case to support the claim of the appellants. Here, the crucial expression is actually wider in scope, as use in relation to manufacture of the final product is also an eligible criterion apart from use in the manufacture. On all counts the appellants succeed and Modvat credit is admissible in respect of the inputs in question. We, therefore, allow the Appeal and set aside the impugned order. The appellants will be entitled to consequential reliefs. 6. Before parting with the matter, we have to refer to the obs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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