TMI Blog1990 (2) TMI 206X X X X Extracts X X X X X X X X Extracts X X X X ..... used for packing the explosives cannot be treated as inputs for credit of duty under Notification No. 201/79. He thus partially rejected their appeal before him and correspondingly upheld part of the order dated 1-4-1984 of the Assistant Collector of Central Excise, Dhanbad. However, the Assistant Collector s disallowing of the benefit of proforma credit in respect of two chemicals was set aside by the Collector (Appeals) as he held that these two chemicals were directly used in the manufacture of explosives. He also rejected the finding of the Assistant Collector that there was suppression of information by the appellants and set aside the imposition of penalty of Rs. 5,000/- 2. Shri S. Charlu, the authorised representative of the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fertilisers. Treatment of water for boiling to produce steam is necessary for safeguarding the boiler and preventing it from being damaged by formation of scales which may pose a danger as well as result in loss of heat and higher consumption of fuel. Such water treatment chemicals cannot be extended the benefit claimed by the appellants and the same has been rightly rejected by the lower authorities. He opposed the appeal. 4. We have given the matter our most careful consideration. We accept the contention of the appellants that they had applied for availment of credit under Rule 56A and not under Notification 201/79 and to that extent, the observations of the Collector (Appeals) that the dispute was whether the products in question cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otton Spinning Weaving Mills Co. Ltd. v. Sales Tax Officer [1965 (16) STC 563 SC], the Supreme Court construed the expression in the manufacture or processing of goods for sale in the context of Sales Tax Law and had held that manufacture of goods should normally encompass the entire process carried on of converting raw materials into finished goods. Again, in Collector of Central Excise v. Ballarpur Industries Limited, reported in 1989 (43) E.L.T. 804 (SC), the matter before the Supreme court for decision was whether Sodium Sulphate used for chemical reaction at pulp stage is treatable as raw material used for manufacture of paper even if it is burnt up and does not retain its identity in the end-product. The argument of the Departme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which the Sodium Sulphate is used was anterior to and at one stage removed from the actual manufacture of paper. They also referred to their own observation in Collector of Central Excise v. Eastend Paper Industries Ltd., reported in 1989 (43) E.L.T. 201 SC to the following effect : Where any particular process, is this Court further emphasised, 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 the process, would fall within the expression in the manufacture of goods .... . 7. The above decisions of the Supreme Court have been rendered in the context of Notification 201/79 to decide whether certain products ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... printing inks used to print the product details on card-board containers used for packing of explosives and accessories should qualify for the benefit under Rule 56A. Without such printing, the excisable good cannot be marketed by the company, as pointed out by them. The printing on the cartidges and on the containers is a process incidental and ancillary to the completion of manufacture of the product. In the circumstances, we hold that inks and Diacetone Alcohol which are used for printing purpose would qualify for the benefit under Rule 56A. 8. Shri Biswas, learned SDR raised a point that the purification of water for the purpose of production of steam is being carried out by the appellants mainly with a view to protect the boilers fr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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