TMI Blog1998 (1) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... on payment of duty as final product while the major portion of the Carbon Electrode are utilised captively in manufacture of aluminium without payment of duty under Notification 217/86. Revenue intends to deny the benefit of Modvat credit on the aforesaid inputs which have been utilised in manufacture of Carbon Electrode and which in turn are utilised captively on the ground that the aforesaid inputs have been utilised not in the manufacture of the aluminium which is the dutiable final product but in the manufacture of Carbon Electrode which is fully exempted under Notification 217/86. Hence drawing upon the provisions of Rule 57C of the Central Excise Rules, 1944, the benefit of Modvat credit is sought to be denied inasmuch as the final p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spect, we are on the question of interpretation of the terms `intermediate product used in Rule 57D vis-a-vis `final product used in Rule 57C. The undisputed factual position is that the respondents final product inter alia includes printed aluminium foil. For obtaining this final product, plain aluminium foil obtained by rolling aluminium ingots/billets and also printing ink are identifiable as inputs going into the manufacture. Though the line of manufacture of plain foils is different, which has to be obtained independent of the line of manufacture of printing ink, both are products which are in the nature of essential inputs for printed aluminium foils. Hence, in such a case, where the final product is obtained by combining two or mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , ld. SDR, Shri T. Premkumar has reiterated the aforesaid ground. In support of his submission, he also relies on Single Member judgment in the case of C.C.E., Chandigarh v. Shiv Industries reported in 1997 (93) E.L.T. 174 wherein it has been held that Calcium carbide used in manufacture of Acetylene which is further used in manufacture of final product is not entitled to the benefit of Modvat credit. He also relies on a judgment of SZB in the case of Bakelite Hylem Ltd. v. Commissioner of Central Excise, Hyderabad reported in 1997 (93) E.L.T. 351 (Tribunal). He prays for dismissing the Appeals. 5. In his rejoinder, ld. advocate relies on another judgment of the Division Bench of NZB of this Tribunal in the case of Geep Industrial Syndica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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