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TMI Blog2017 (2) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... equipment/ appliance/ apparatus of the plant, machinery of the appellant. It is admittedly a chemical and used during the course of manufacture, therefore in our considered view it is an input. Reliance placed in the case of Reliance Industries Ltd. Vs. CCE [2004 (4) TMI 494 - CESTAT, MUMBAI], where the credit on Molecular Sieves is admissible. Extended period of limitation - Held that: - the availment of credit on Molecular Sieves was known to the department, therefore, the demand is hit by limitation also as there is no suppression of fact on the part of the appellant - demand set aside. CENVAT credit allowed - appeal allowed - decided in favor of appellant. - E/1432/06 - A/85219/17/EB - Dated:- 5-1-2017 - Shri Ramesh Nair, M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of LAB. He submits that its used in the manufacture of LAB however it does not contain in the final product. He referred to the definition of input service wherein the input even though used indirectly and even if not contained in the final product it will be considered as input within the meaning under rule 57. He submits that the goods in question that is Molecular Sieve is not capital goods or even parts thereof. Therefore the contention of the adjudicating authority for excluding the item from the definition of input is not correct. He submits that the terms goods used in or in relation to the manufacture of final product means if the goods contained in the final product that will be as used in the manufacture of final products, in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (xi) Cyanamid India Limited Vs. Collector of Central Excise, Baroda 1997 (93) E.L.T. 576 (Tribunal) He particularly referred to the judgment of this Tribunal in the appellant's own case according to which the goods in question used as catalyst in the manufacture of final products were allowed as input. In the present case also the goods i.e. Sodium Silico Aluminate which is a Molecular Sieve was used as catalyst during the course of manufacture of final product. Therefore the issue is no longer res integara, hence the credit is admissible. He further submits that the demand is also time bar as the longer period of limitation was invoked in demanding the modvat credit amount. He submits that the dispute was initially raised on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ydrogen. (Hydrogen treatment) (c) N-Paraffins are extracted from the purified C10-C14 Kerosene by the use of a chemical called Sodium Silico Aluminiate (Molex Adsorbent ADS-14) which is also known as Molecular Sieve . The said chemical (Molecular sieve) extracts the N-Paraffins from the Kerosene by the process of adsorption. (Molecular extraction). (d) The N-Paraffin so extracted is then converted into Olefin in the Pacol unit. (e) The Olefins are then treated with Benzene in the alkylation unit to obtain LAB . From the above process it is observed that the process of manufacture of LAB start from the stage of Kerosene and in the process of extraction of N-Paraffins from the purified C10-C14 Kerosene by the use of a che ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he nature of 'input' and therefore credit under Rule 57Q meant for capital goods cannot be granted for this item. I agree with this. It is seen the appellants took credit for this item under Rule 57Q in view of the show cause notices issued by the range authorities for credit taken earlier for similar goods under Rule 57A. The first adjudication order granting Modvat credit under 57Q for molecular sieves was issued by the JAC in July 1996 vide Order in original No. SRT-IV/Adj/82/96/MP dated 18-7-1996. Since the item has no role to play in the manufacture of goods in the light of Supreme Court judgment in Rajasthan Steel Chemicals Works, 1991 (55) E.L. T. 444 credit is not available to this item. I also disagree with th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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