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TMI Blog2002 (7) TMI 618X X X X Extracts X X X X X X X X Extracts X X X X ..... r the Tribunal was right in law in extending the MODVAT credit under Rule 57A of the Central Excise Rules, 1944, on the items Hydrochloric Acid, Chlorine, Sulphuric Acid and Alum used by the Assessee/ manufacturer of Aluminium even though those chemicals are used for safeguarding the plant and equipment from corrosion and for maintaining the quality of the end product ? STATEMENT OF THE CASE 2. The appellant-assessee is a registered company under the Companies Act, 1956. They manufacture Aluminium and articles thereof falling under Chapter 76 of the Central Excise Tariff Act. In the process of manufacture of Aluminium and other products they use different chemicals like Hydrochloric Acid, Chlorine, Sulphuric Acid and Alum. They claim b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or Modvat credit. I find that use of Hydrochloric Acid for treating the gas for polution lies on an identical plain as the use of caustic soda lye. In view of that, I find the ratio of the said case laws applies to the facts of the present case. Therefore, Hydrochloric Acid used for treating the smelter gas would become an eligible input for Modvat credit. Use of Hydrochloric Acid in the production of steam by the demineralised water wherein Hydrochloric Acid is added in the process has been held as connected with the manufacturing process as in the case of High Tech Carbon (supra). It was held that if water was not treated, the process would become commercially inexpedient. In the present case also Hydrochloric Acid is put to same use for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ove cases considered specifically these issues and therefore they get precedence to decide this issue. In view of the above analysis, I find that the prayer of the appellants that Hydrochloric Acid and Sulphuric Acid, in view of their use considered above, would be eligible inputs under the Modvat Scheme, is accepted. The order-in-appeal impugned is accordingly modified to this extent. The appellants succeeed accordingly with consequential relief as per law. 3. Aggrieved by the order of the Tribunal, the Commissioner has filed the reference application before the Hon ble High Court raising the above question for determination as per law. As the Hon ble High Court has directed for submitting the records by drawing statement of the case, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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