Home Case Index All Cases Central Excise Central Excise + SC Central Excise - 2005 (2) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2005 (2) TMI 132 - SC - Central ExciseCenvat/Modvat Credit - Inputs goods - whether the appellant was entitled to the benefit of Notification No. 217/86-C.E., dated 2-4-86 in respect of MS Casings - Held that:- CEGAT was clearly wrong in its approach. The issue has been settled by this Court in Collector of Central Excise v. Ballarpur Industries Ltd. - [1989 (9) TMI 102 - SUPREME COURT OF INDIA] where the construction of a similar Notification was in question. This Court held that there were four kinds of inputs which could be said to be ingredients (i) those which retain their dominant individual identity and character throughout the process and also in the end-product, (ii) those which, as a result of interaction with other chemicals or ingredients, might themselves undergo chemical or qualitative changes and in such altered form find themselves in the end-product, (iii) those which like catalytic agents, while influencing and accelerating the chemical reactions themselves remain uninfluenced and unaltered and remain independent of and outside the end-products; and (iv) those which might be burnt up or consumed in the chemical reactions - The process of manufacture in which metal casings are involved clearly fell within the 4th category - Decided in favour of assessee.
|