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TMI Blog2022 (10) TMI 513X X X X Extracts X X X X X X X X Extracts X X X X ..... t Steel Formers fall under Chapter 73 of the Central Excise Tariff Act, 1985 . Upto 31.03.2011, the definition of input covered all goods except diesel and petrol used in relation to the manufacture of the final products whether directly or indirectly and whether contained in the final products or not and included various other goods such as lubricating oil, coolant etc. With effect from 01.04.2011, the definition of input was amended to mean inter alia, as all goods used in the factory by the manufacturer of the final product , unless specifically excluded - In the present case, the authorities below have categorically admitted that the impugned goods are used in the fabrication of Steel Former, which undisputedly gets consumed in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the jurisdictional Central Excise Range Officer during the years 2010-11 and 2011-12. No declaration in respect of the receipt of the impugned goods and their manner of utilization inside the factory of the assessee had been submitted to the Department and accordingly it was alleged that the assessee had deliberately withheld information and concealed facts with an intent to wrongly avail credit and evade payment of duty. Show Cause Notice dated 07.05.2015 was issued proposing disallowance of the Cenvat Credit amounting to Rs.4,80,578/- along with applicable interest and penalty. In response to the Show Cause Notice the assessee submitted that they had filed their ER-1 returns for each month during the period under dispute and the detai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnace as steel Former pattern to gie shape and rigidness to ramming mass (referactory castable) during lining and maintenance work of furnace. When the Sponge Irons along with other raw materials are melted for manufacture of Billet, the said Steel Former is also melted and mixes with the molten metal. The final quantity of billet manufactured by us also contains the Iron of the weight of this Steel Former. So, these HR sheet/ plates are used as inputs and becomes eligible for Cenvat Credit under CCR, 2004. MS Rods Ms Rod basically has three types of use in relation to manufacture of Billet according to their size and Specification. (i) MS Rod of 25 mm. size:- MS Rod of 25mm size are cut into required length of 5-6 Mtr. An ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellant s manufacturing process. However, in the present case, Cenvat credit in respect of the impugned goods has been denied on the ground that Steel Formers fall under Chapter 73 of the Central Excise Tariff Act, 1985 . Upto 31.03.2011, the definition of input covered all goods except diesel and petrol used in relation to the manufacture of the final products whether directly or indirectly and whether contained in the final products or not and included various other goods such as lubricating oil, coolant etc. With effect from 01.04.2011, the definition of input was amended to mean inter alia, as all goods used in the factory by the manufacturer of the final product , unless specifically excluded. In the present case, the authoriti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which, as a result on interaction with other chemicals or ingredients, might themselves undergo chemical or qualitative changes and in such altered form find themselves in the end-product; those which, like catalytic agents, while influencing and accelerating the chemical reactions, however, may themselves remain uninfluenced and unaltered and remain independent of and outside the end-products and those, as here, which might be burnt-up or consumed in the chemical reactions. The question in the present case is whether the ingredients of the last mentioned class qualify themselves as and are eligible to be called Raw-Material for the end-product. One of the valid tests, in our opinion, could be that the ingredient should be so essential fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 . We also find no substance in the contention of Sri Ganguly that the process in which the Sodium Sulphate was used, was anterior to and at one stage removed from the actual manufacture of paper. Sri Sorabjee s answer to this contention is, in our view, appropriate. That apart the following observations in Collector of Central Excise v. Eastend Paper Industries Ltd. cited by Sri Ganguly himself is a complete answer: ....Where any particular process, this Court further emphasised, 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 manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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