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TMI Blog2013 (3) TMI 320X X X X Extracts X X X X X X X X Extracts X X X X ..... excise duty. During the manufacture of those products, toxic effluent 'Jarosite' is generated. The appellant as per Pollution Under Control norm treat the aforesaid "Jarosite" with cement and lime before discharging the said treated effluent as secured land fill. During the relevant period, the appellant availed Cenvat credit on the cement used for treating the effluent 'Jarosite' before dumping it in the land fill. The Department was of the view that since exclusive use of cement was to treat the effluent and that it was not used in connection with the manufacture of final product, the appellant was not entitled to Cenvat credit. Accordingly, show cause notice proposing to disallow Cenvat credit availed by him and to recover the amount was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a plant manufacturing a particular end-product is a part and parcel of the manufacturing process of end-product. In view of the above, it is contended that the appellant has a strong prima facie case to justify the waiver of condition of pre-deposit of duty demand, interest and penalty. 4. Shri I. Baig, ld. AR for Revenue has strongly opposed the stay application. He has argued in support of the impugned order and submitted that undisputedly, the cement regarding which Cenvat credit has been availed by the appellant was used only for treating the efluent generated in the manufacturing process which has no direct or indirect connection in the manufacture of final product of the appellant company. Thus it is argued that the Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent treatment plant was concerned, was upheld. 8. For our conclusion we draw support from the judgment of this Court in Collector of Central Excise, Calcutta-II v. Eastend Paper Industries Ltd. - 1989 (43) E.L.T. 201 = 1989 (4) SCC 244, where it was held, "Where any particular process...............is so integrally connected with the ultimate production of goods that, but for that process, manufacture or processing of goods would be commercially inexpedient, articles required in that process, would fall within the expression in the manufacture of goods". This was a reiteration of the view expressed in M/s. J.K. Cotton Spinning & Weaving Mills Co. Ltd. v. Sales Tax Officer, Kanpur and Another - 1965 (1) SCR 900. It was there held, "The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. It is too late in the day to take the view that the treatment of effluents from a plant is not an essential and integral part of the process of manufacture in the plant. The emphasis that has rightly been laid in recent years upon the environment and pollution control requires that all plants which emit effluents should be so equipped as to rid the effluents of dangerous properties. The apparatus used for such treatment of effluents in a plant manufacturing a particular end-product is part and parcel of the manufacturing process of that end-product. The ammonia used in the treatment of effluents from the urea plant of the appellants has, therefore, to be held to be used in the manufacture of urea and the raw naphtha used in the manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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