9911796707
TMI Blog1996 (1) TMI 226X X X X Extracts X X X X X X X X Extracts X X X X ..... an input. Calcium carbide is also manufactured in the Plant of the applicants and for manufacture of calcium carbide, they used tapping electrodes. Therefore, the short question for determination before me is whether tapping electrodes are inputs for purpose of Rule 57A of the Central Excise Rules so as to be eligible for modvat credit. 2. Shri R. Nambirajan, the learned Advocate appearing for the appellants submitted that the tapping electrodes are used in the manufacture of calcium carbide which is captively consumed in their factory for manufacture of PVC resin. He submitted that the process of manufacture of calcium carbide is described in detail in Ullmann s Encyclopedia of Industrial Chemistry indicating that tapping electrodoes ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was used but consumed in the process of manufacture of the final product and the final product also contained some percentage of the carbon paste and therefore, the product was a raw material . 3. The learned Counsel also referred to the Hon ble Supreme Court judgment in the case of Collector of Central Excise v. Ballarpur Industries Ltd. reported in 1989 (43) E.L.T. 804 (SC) wherein the Apex Court had held The question in the present case is whether the ingredients of the last mentioned class qualify themselves as and are eligible to be called `raw material for the end-products. One of the valid test, in our opinion could be that the ingredient should be so essential for the chemical process culminating the emergence of the desired en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... odes conform to the test laid down by the Hon ble Supreme Court and therefore, the modvat credit should be available to the appellants holding that tapping electrodes were used in or in relation to the manufacture of PVC resin. 4. Shri Y.R. Kilaniya, the learned JDR appearing for the respondents submitted that the Collector, Central Excise (Appeals) had clearly held that tapping electrodes are not inputs as they cannot be considered as raw material as they were not directly reacting or contributing in either creation of the finished product. He submitted that tapping electrodes are not used in the manufacture of PVC resin and that they cannot be termed as input in the manufacture of PVC resin. Reiterating the findings of the lower authori ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
