TMI Blog1990 (4) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... ng process of caustic soda. The Anodes are used in the electrolysis process leading to the production of caustic soda. The claim was rejected by the lower authorities. 2. The learned Advocate for the appellants pleaded that the matter was covered by the ruling of the West Regional Bench of the Tribunal vide their order in the case of Gujarat Alkalies Chemicals Ltd. v. Collector of C. Ex., reported in 1989 (41) E.L.T. 424 (Tribunal), wherein the Tribunal has held that Titanium Metal Anodes were eligible for the benefit of MODVAT credit and drew our attention to the findings of the Tribunal set out in para 8 of the order, which for convenience of reference are reproduced below: Anodes are necessary in the electrolysis process for the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the input duty credit when used for the manufacture of caustic soda. He also cited the order of this Bench in Order No. 16/1990 dated 2-1-1990 in appeal No.E/486/88/MAS by Cominco Binani Zinc Ltd, wherein in the case of Aluminium sheets which are used in the electrolysis process the benefit of MODVAT credit has been allowed. 3. The learned Senior D.R. for the Department pleaded that the Special Bench decision given in the context of Notification 201/79-CE was not relevant as there were no excluded items specified in Notification 201/79 as against specified items which stand excluded from the scope of the benefit of MODVAT credit. He pleaded that unless the inputs used directly take part in the formation of the end-product the benefit o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , have held as under: It is observed that the term inputs used under Rule 57A has a wider import. Aluminium sheets used being not equipment as such and since these participate in the manufacturing process, have to be taken to be covered by the provisions of Rule 57A for grant of MODVAT credit. The Hon ble Supreme Court in the case of M/s. J.K. Cotton Mills Co. Ltd. v. Sales Tax Officer, reported in AIR 1965 SC 1310 (V C 213) examined the scope of the term goods used in the manufacture in the context of Rule 18 framed in the context of Section 13 of the Central Sales Tax Act, 1956 has held as under:- The goods referred to in clause (b) of sub-s. (3) of S. 8, which a registered dealer may purchase shall be goods intended for use by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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