9911796707
TMI Blog2018 (3) TMI 348X X X X Extracts X X X X X X X X Extracts X X X X ..... Kulgod, Asstt.Commr. (A.R) for respondent ORDER Per : Raju The appellant are in appeal against the confirmation of demand of Central Excise duty, interest and imposition of penalty under Section 11AC read with Rule 25(1) of the Central Excise Rules, 2004. 2. Ld. Counsel for the appellant pointed out that they are engaged in the manufacture of bulk drugs. During the process of manufacture of bulk drugs they used Palladium Charcoal Catalyst which is imported from UK. During the process of manufacture the said catalyst facilitates the Reaction. Over the period of use the said catalyst looses its effectiveness/potency and has to be replaced periodically. Palladium the precious metal which is used to manufacture this catalyst. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the following decisions: (i) Collector of Central Excise Vs. Mehta Vegetable Products 1997 (93) ELT 229 (ii) Markfed Vanaspati Allied Industries Vs. Commissioner of Central Excise 2000 (116) ELT 204 (iii) Nirma Ltd. Vs. Commissioner of Central Excise 2004 (171) ELT 238 (iv) Commissioner of Central Excise Vs. Deepak Fertilizers Petrochem Corporation 2004 (178) ELT 686. 2.3. Ld. Counsel argued that catalyst cannot be considered as raw material used in the process of manufacture as it does not form part of the end-product. He thus argued that catalyst cannot be said to emerge as a result of manufacture. In this regard he relied on the following decisions: (i) Commissioner of Central Excise Vs. I..G. Petrochemic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Palladium Catalyst cannot be classified under Chapter 26 as alleged in the show cause notice. Ld. Counsel further relied on the Chapter Heading 3815 under which the Palladium Catalyst is classified. The Ld. Counsel argued that HSN Notes of the said heading clearly prescribed that- This heading does not include: (a) Spent catalysts of a kind used for the extraction of base metals or for the manufacture of chemical compounds of base metals (heading 26.20) and spent catalysts of a kind used principally for the recovery of precious metal (heading 71.12) 2.6. Ld. Counsel further argued that show cause does not disclose under which heading revenue seeks to classify spent catalysts. The show cause notice however notes that earlier ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f) and 3 of CEA, 1944. Since the investigation itself has not brought the spent palladium under any of the Chapter headings, I am afraid duty cannot be demanded on the same. Since the issue involved herein has been properly analysed by the Commissioner as can be seen above, we do not find any substance in the appeal filed by the Revenue. In the result, these two appeals are dismissed accordingly . Apex Court upheld the order of Tribunal on the following ground: Delay condoned. Application for substituting the name of the respondent is allowed. Heard the learned counsel for the parties at length. In our view, the order passed by the Tribunal does not call for any interference as the Department has failed to es ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision of Tribunal was upheld by Supreme Court as reported 1995 (78) ELT A217. 6. Ld. Counsel had also relied on the decision of Tribunal in the case of Nirma Ltd. 2004 (171) ELT 238. In the said decision following has been observed: (b) The question therefore would arise whether Capital Goods which loose their utility and result in waste or otherwise to be disposed off, would result in manufacture of exigible goods when they are marketable. Examining this aspect it is found : (i) (ii) .. (iii) .. (c) Once no manufacture takes place, the levy under Section 3 is not attracted, the question of classification does not arise, therefore no findings are arrived at on the classification of the entity under dispute. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
