9911796707
TMI Blog2008 (1) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Excise Rules, 1944, on the premise that the inputs were used in or in relation to the manufacture of final products. Show cause notices were issued proposing denial of Modvat credit and imposition of penalty inasmuch as the said goods were not considered as inputs in terms of Rule 57A of the Central Excise Rules. The Assistant Commissioner, by his order in original in Sl. No.112/96 dated 16.05.1996, Sl. No.19/97 dated 01.04.1997, Sl. No.95/97 dated 13.11.1997 and Sl. No.1/1998 dated 08.01.1998 disallowed the credit of Rs.75,80,575.68 and allowed the remaining credit in respect of lubricating oil. In respect of the issues which were disallowed by the lower authorities, the assessee filed an appeal and in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to treat the effluent which was a wastage obtained and hence it was not used in or in relation to the manufacturing process. This issue is no longer res integra as it has already been considered by the Supreme Court in the case of Indian Farmers Fertiliser Co-operative Ltd. v. C.C.E., Ahmedabad, [1996] (86) E.L.T. 177(SC) = AIR 1996 SC 2542. In that case raw naptha was obtained at the concessional rate and used for producing ammonia which in turn was used partly, directly in the urea plant and partly, indirectly in the production of urea by being employed in off-site plants, namely, water treatment plant, steam generation plant, inert gas generation plant and effluent treatment plant, all of which were part of the integr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n." Hence, the HCL used to treat the effluent would qualify for the credit. 3. The other issue is that certain items are used for manufacture of Soderberg paste which is used as anode in the electrolytic cell. As the electrolytic cell did not qualify as goods the anode which is made out of the items forming a component of the cell was not eligible for credit under Rule 57-A. In respect of the very same item which is used for manufacture of soderberg paste which is a by-product in the manufacture of Aluminium in the case of Indian Aluminium Co. Ltd., 1988 (98) ELT 397 (T) it has been held in favour of the assessee. Factually, the Tribunal found that the Soderberg which is a paste and which is an intermediate product ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of oxygen gas, acetylene gas, electrodes, welding wire and pig iron, the Tribunal held that Modvat credit were to be allowed following the judgment of the Tribunal in 1993 (67) ELT 364. The issue has been covered in favour of the assessee by the decision of the apex Court in the case of C.C.E., Coimbatore v. Jawahar Mills Ltd., 2001 (132) ELT 3 in which the earlier decision of the Supreme Court in the case of Indian Farmers Fertiliser Co-operative Ltd. v. C.C.E., Ahmedabad, AIR 1996 SC 2542, has been taken note of. Incidentally with regard to all these issues, the department has contended that the case of Jawahar Mills Ltd., [1999] 108 ELT 47 held in favour of the assessee has been taken on appeal by the department ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
