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TMI Blog1997 (11) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... nting to manufacture it is the job workers who will be required to be treated as manufacturers. They may be allowed to urge this legal point based on the facts of the case in addition to those already taken in the appeal memorandum. 3. Ld. DR has no objection. 4. Request allowed. Final Order No. E/1614/97-B [Order per : S.K. Bhatnagar, Vice President]. - This is an appeal against the order of Collector of Central Excise, Jaipur dated 1-4-1992. 2. Ld. Counsel stated that the appellants are inter alia, engaged in the manufacture of zinc, lead and products thereof. The zinc is manufactured by electrolysis process wherein zinc sulphate solution (which is the electrolyte) is electrolysed with the help of electric current which is passe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that the lead electrode and aluminium electrode are entitled to the benefit of full exemption under Notification No. 217/86 as these electrodes are used in the manufacture of zinc. The appellants also alternatively claimed exemption under Notification No. 281/86. 5. The Collector has in the impugned order held that the aluminium electrode and lead electrode are distinct from the raw material viz., aluminium header and aluminium sheet and lead header and lead sheet respectively. He has accordingly held that the process of attaching the header with the sheets would amount to manufacture of a new item viz., electrodes. With regard to the exemption under Notification No. 217/86 the Collector of Central Excise in the impugned order had h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... job workers alone can be treated as manufacturers and they alone are liable to pay duty, if any, on the lead/aluminium electrodes in question. 9. In any view of the matter and without prejudice to the above, the lead anode sheets, aluminium cathode sheets are wholly exempt from payment of duty in terms of Notification No. 217/86 since they are used in or in relation to the manufacture of zinc. In r/o the bought out aluminium sheet and bought out header the appellants claimed Modvat credit and this Hon ble Tribunal in Final Order No. A/653/96-NB, dated 29-2-1996 held that the aluminium sheet which is immersed in electrolyte solution during the electrolysis process can be considered as inputs under Rule 57A, used in relation to the manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Notification No. 281/86. 11. In any view of the matter, the Modvat credit on the bought out aluminium sheet has to be extended and adjusted in the demand. 12. The entire demand is barred by limitation as the entire process of manufacture of zinc is known to the department. 13. Ld. DR reiterated the department s view as contained in the impugned order and emphasised that the appellants are manufacturing lead sheets in their own factory. They are paying duty on the lead sheet and on the lead headers and thereafter employing a fabrication process which gives rise to a new, different and identifiable product other than the raw material and the product becomes an electrode only after the header is attached to the sheet through welding. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incorrect or wrong. 18. Electrode has been defined as an electrical conductor through which an electric current enters or leaves a conducting medium whether it be an electrolytic solution, solid, molten mass, gas, or vaccum vide McGraw Hill Encyclopedia of Science and Technology (P. 700); and there are various types of electrodes including metal on electrodes; and in the electrolytic process for production of zinc, it is lead silver alloy anodes and aluminium cathodes are used as per McGraw Hill Encyclopedia of Science and Technology (P. 805); The Condensed Chemical Dictionary, Tenth Edition by G.G. Hawley describes Electrode - `Either of two substances having different electromotive activity, which enables an electric current to flow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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