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TMI Blog1998 (4) TMI 291X X X X Extracts X X X X X X X X Extracts X X X X ..... rt of the soda ash manufactured by the appellant is used for the purification of the brine. It is stated that the soda ash reacts with calcium and magnesium to form calcium carbonate which is used in order to remove traces of calcium and magnesium which is present in the salt which is used to make the brine. 2. In the order impugned in the appeal, the Collector has held that the appellant was not entitled to take credit of the duty paid on ammonia used for that quantity of soda ash which was used in purification of the brine. He has said that soda ash which was used captively by the appellant for purification of the brine did not pay duty as exemption was claimed in terms of Notification 177/86 and that therefore by application of Rule 57 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orating the words in or in relation to the manufacture in Rule 57A is to widen the scope and content of the term input so as to attract goods which do not enter directly or indirectly with the finished product or use in any activity concerned with or pertaining to the manufacture of finished product. Applying this criterion he says ammonia is certainly used in the manufacture of soda ash and credit paid on which could be available on payment of duty on the soda ash. 3. The departmental representative contends the explanation to Rule 49 which provides that excisable goods made in a factory and consumed or utilised for the manufacture of any other commodity in such factory shall be deemed to have been issued or removed from such factory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch it cannot be obtained is an activity concerned with the manufacture of finished goods. The contention of the appellant that finished goods cannot be manufactured unless the brine has been purified cannot be rebutted. In Shri Ramakrishna Steel Industries Ltd. v. CC the scope of the term in relation to to show that chemicals used in the manufacture of sand moulds, which were exempted from duty, without which metal castings could not be made were inputs used in the manufacture of sand castles. Applying the ratio of these two decisions it has to be held that soda ash which is to perform is used in relation to the soda ash. 6. We are not able to appreciate the departmental representative s argument that, because the goods were deemed to h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sider the soda ash as an intermediate product. We are not concerned with that. We are concerned with whether ammonia is an input. The fact that before its use in the course of manufacture of soda ash it undergoes transformation into ammonia does not by itself debar it from being considered an input. 7. Another contention was that ammonia had not been declared in the manufacture of soda ash specifically in use of purification of the brine. The manufacturing process is not required to be shown in the 57G declaration. The appellant had indicated ammonia as an input in the final product. This declaration would equally hold true whether ammonia is directly used in the final product or whether it is used to purify the brine which is soda ash wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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