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TMI Blog2022 (4) TMI 1488X X X X Extracts X X X X X X X X Extracts X X X X ..... ther words, gas and electric welding is an integral part of the manufacturing process. It is also well-known that in the process of welding, welding electrodes are very much necessary. Though, they lose their character and nature in the end product, but, nonetheless, without welding electrodes, a welding cannot take place, and pre-fabricated products cannot be manufactured. Hence, we are of the opinion that welding electrodes are raw material as far as manufacturing the pre-fabricated products are concerned, and therefore, the learned Assessing Authority, as well as the learned Tribunal, have committed error on record by not extending the benefit of input tax credit to the revisionist which assessing the tax liability. The matter is remitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... put tax credit to the revisionist to those goods, especially welding electrodes, which have been used in the manufacturing of the finished goods. The order of assessment was passed on 25.06.2010. The said order was challenged before the learned Commercial Tax Tribunal, Dehradun (hereinafter referred to as the "Tribunal" for brevity), in Second Appeal No.25 of 2012, which was also dismissed on 25.06.2013. The matter relates to the Assessment Year 2006-07. 3. It is apparent from the records that the Assessing Authority, while assessing the commercial tax of the revisionist, treated certain goods, especially welding electrodes, which were used by the revisionist in manufacturing of pre-fabricated structures, as consumables, and not as raw mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which is used in the chemical recovery cycle of sodium sulphide which forms an essential constituent of sulphate cooking liquor used in the digestion operation in manufacturing of paper and paper boards is raw material, or not?" The Hon'ble Supreme Court has held that for an item to qualify itself as "raw material", it need not necessarily, and in all cases go into, and be found, in the end-product. Merely because this ingredient was consumed and burnt up in the course of chemical reaction, it will not ipso facto ceased to be raw material. Sodium Sulphate was utilised in the preparation of an anterior, intermediate product at the stage of 'digestion' of the pulp. It is so integrally connected with the ultimate production of goods t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommodity can be produced." 7. In the case of BOC India Ltd. vs. State of Jharkhand & others, and Tata Steel Ltd. vs. State of Jharkhand & others, reported in [(2009) 21 VST 490 (SC)], the Hon'ble Supreme Court has examined "whether oxygen used in the manufacturing of steel is a raw material, or not?" The Hon'ble Supreme Court took into consideration the above quoted judgments in the cases of Tata Iron & Steel Co. Ltd. vs. State of Jharkhand, reported in (2005) 4 SCC 272; of Central Excise, New Delhi vs. Ballarpur Industries Ltd. (supra); and Tata Engineering & Locomotive Company Ltd. vs. State of Bihar (supra), and has come to the conclusion that oxygen which is injected to the furnace through lance at the time of manufacture of steel, tho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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