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TMI Blog1995 (6) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... is common order. 2. The point to be considered in these cases is whether Carbon Paste used in the manufacture of Calcium Carbide is entitled to benefit of exemption in terms of Notification No. 201/79-C.E., dated 4-6-79 as amended, Notification No. 201/79-C.E. exempts all excisable goods on which duty of excise is leviable and in the manufacture of which any goods falling under Tarrif item 68 have been used, as raw materials or component parts from so much of the duty of excise leviable thereon as is equivalent to the duty of excise already paid on the inputs. 3. The appellants are manufacturers of Calcium Carbide. It was contended that they used carbon paste in the manufacture of calcium carbide and though the purpose was to convey el ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ri G. Shiv Dass, learned Advocates respectively and the Department was duly represented by Shri Prabhat Kumar, learned SDR. 5. Shri S.K. Kohli submitted that the Assistant Collector has taken a similar view for the earlier period as per his order dated 26-3-83 against which appeal was filed by the party before the Collector (Appeals) and Collector (Appeals) allowed the appeal as per orders dated 13-7-83 holding that carbon paste is a raw material, eligible for set off in terms of Notification No. 201/79 as amended. Department has filed an appeal against that order before the Tribunal but the same was dismissed as barred by time. Again the Assistant Collector has taken the same view stating that the latest decision of the Tribunal in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. The carbon electrode paste normally contains 65 - 70% fixed carbon. The carbon required for calcium carbide is contributed in the above proportion from charcoal and carbon paste. He referred to the decision of the Tribunal in the case of Collector of Central Excise, Allahabad v. Hindustan Aluminium Corporation reported in 1995 (80) E.L.T. 287 (Tribunal) = 1995 (56) ECR 189, wherein it was held that set off admissible even though the raw materials are consumed in the manufacture of intermediate product (which may be exempt from duty) and not directly used in the manufacture of final product. He also relied upon the decision of the Supreme Court in the case of Collector of Central Excise v. Jay Engineering Works Ltd. reported in 1989 (3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that the inputs used in the integrated process to be treated as raw material having been used in the end product and sodium sulphate used for chemical reaction at pulp stage is treatable as raw material used in the manufacture of paper even if sodium sulphate is burnt and does not retain its identity in the end product with reference to set off of duty under Notification No. 105/82 C.E. Apart from relying upon the decisions cited by Shri Kohli, he referred to the decision of the Tribunal in the case of Sandhur Manganese Iron Ores Ltd. v. Collector of Central Excise, Bangalore reported in 1985 ECR 862 and in support of his contention that electrode is not a device or machine, he cited a series of decisions. 7. Referring to the affid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 201/79 was not dealt with therein and some of the decisions were even prior to the decisions in the case of Ballarpur Industries (supra) and furthermore the decisions referred to in the case of Mukund Iron Steel has been overruled by the Calcutta High Court in the case of Singh Alloys and Steel Ltd. reported in 1993 (66) E.L.T. 594 Cal. 9. We have carefully considered the submissions made by both sides and perused the records including case law cited by both sides. Admittedly, the carbon paste was used in the process of manufacture of the finished product calcium carbide and since it was used in and in relation to the process of manufacture of the finished product either of technical necessity or otherwise and not only it was used but ..... X X X X Extracts X X X X X X X X Extracts X X X X
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