9911796707
TMI Blog1994 (4) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacture cathodes and anodes which are used in the electrolytic pot cells and availed set off of duty paid on pitch while clearing aluminium and its manufactures as provided in Notification No. 201/79 dated 4-9-1979 to the tune of Rs. 9,09,186.35 during October, 1981 to May, 1982. 2. That a demand-cum-show cause notice was issued to the party under C. No. 10-Demand/Hindalco/82/331, dated 4-6-1982 by the Superintendent Central Excise Range-IV, Mirzapur for Rs. 9,09,186.35 which they wrongly availed as set off because Hard Pitch, Soft Pitch and Coaltar Pitch are used in the manufacture of cathodes and anodes which fall under T.I. 68 and were exempted from payment of duty vide Notification 118/75 when consumed captively. 3. That the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed as raw-materials for the manufacture of aluminium, the ld. D.R. urged, duty paid thereon is not eligible for set off in respect of clearance of aluminium, under Notification 201/79. The ld. D.R. pointed out that this argument specifically and fully finds support in the decision of the Tribunal in Collector of Central Excise v. Muthu Chemical Industries - 1986 (26) E.L.T. 581, which, the ld. D.R. pleaded, is good law so far as this aspect is concerned even after the Supreme Court decision on certain aspects of the same notification in the case of Collector v. Ballarpur Industries - 1989 (43) E.L.T. 804 (SC) = (1990) 25 ECC 1 (S.C.). 7. The ld. Counsel, Shri N.R. Khaitan for the respondents contended that after the Supreme Court has lai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... athode. When electrolysis takes place, aluminium metal is produced and it settles down on the cathode. Similarly hard pitch and - or coaltar pitch is used for carbon anodes and these anodes are suspended in the pot cell for the purpose of passing electric current through the electrolyte. They have emphasised that these three kinds of pitch are essential inputs for the manufacture of aluminium and aluminium cannot be manufactured without them. The lower authorities have rejected the claim on the ground that the materials are not used directly in the production of aluminium but are used to prepare cathodes and anodes which are intermediate products. However, on this very issue, we find there are Tribunal decisions which do not support the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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