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TMI Blog2008 (1) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... er per K. Raviraja Pandian, J.]-1. These reference case petitions are filed under section 35H(1) of the Central Excise Act, 1944. The assessee, the Madras Aluminium Company Ltd., is manufacturer of Aluminium and articles thereof falling under Chapter Heading No.76 of the Central Excise Tariff Act, 1985. It availed the credit of duty on 40 items to the tune of Rs.77,21,450.41 declaring the same as inputs under Rule 57A of the Central 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ules, 1944, and 2. Whether declarations under Rule 57Q made would entitle the assessee to credit under Rule 57A even though a declaration was not in terms of Rule 57A?" 2. The primary contention of the revenue in this case is that the items are not used in or in relation to the manufacture of final product. The first of the items is Hydrochloric Acid (HCL). According to the department, HCL was used 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 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ratus 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 manufacture of such ammonia to be entitled to the said exemption." 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 wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the basis of the write up the Tribunal satisfied that these items were not used for repairing or maintenance but actually were used in or in relation to the manufacture of the final product. We approve the finding of fact that these items are used in or in relation to the manufacturing activity as nothing contrary has been placed before us. 6. In respect 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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