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2013 (3) TMI 320 - CESTAT NEW DELHICenvat Credit - Input - Cement used for treatment of toxic effluent generated during the manufacture of final product to meet the pollution control obligation - whether or not this amounts to use for or in relation to the manufacture of final product ? - Held that:- As decided in Collector of Central Excise, Calcutta-II v. Eastend Paper Industries Ltd. (1989 (8) TMI 81 - SUPREME COURT OF INDIA) any particular process 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 manufacture of goods”. The expression “in the manufacture” takes in within its compass, all processes which are directly related to the actual production. It is too late in the day to take the view that the treatment of effluents from a plant is not an essential and integral part of the process of manufacture in the plant. The emphasis that has rightly been laid in recent years upon the environment and pollution control requires that all plants which emit effluents should be so equipped as to rid the effluents of dangerous properties. The apparatus 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. From the above enunciation of law it is clear that use of cement for treatment of effluent generated during manufacture of zinc, lead and sulphuric acid has to be taken as used in the manufacture of those final products. Thus appellant has been able to make out a prima facie case for waiver of condition of pre-deposit. Stay application allowed - in favour of assessee.
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