TMI Blog1990 (5) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... Sec.11A of the Central Excises and Salt Act, 1944 inasmuch as the show cause notice in regard to the same was served on the respondent only on 6-1-1988. 2. Shri K. Narasimhan, the Learned Counsel for the respondent at the outset submitted that the lower appellate authority has not gone into the merits of the issue namely whether Titanium Anodes, being a consumable item used in or in relation to the manufacture of Caustic soda/Caustic potash in the electrolysis process, should be treated as input within the meaning of Notification No. 177/86 dated 1-3-1986 and consequently whether the respondent would be entitled to the relief of the same. The learned Counsel urged that this issue has been decided by a Bench ruling of this Tribunal in E/A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 302/90 dated 4-4-1990 of the Bench (cited supra), reported in 1990 (50) E.L.T. 172 (Tri.) and also having regard to the fact that the very same lower appellate authority has followed the ratio of the West Regional Bench of CEGAT in the case of M/s. Gujarat Alkalies Chemicals Ltd. v. Collector of C. Ex., reported in 1989 (41) E.L.T. 424 (Tribunal) held in favour of the very same respondent in respect of an identical input in question, we do not think a remand is called for and the matter may be disposed of on merits as well. The South Regional Bench of the Tribunal in the case of Travancore Cochin Chemicals at the relevant portion with reference to the eligibility of Modvat credit in respect of Titanium Anodes has held as under :- 4. We o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. S.T.O., 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-sec. (3) of S. 8, which a registered dealer may purchase shall be goods intended for use by him as raw materials, processing materials, machinery, plant, equipment, tools, stores, spare parts, accessories, fuel or lubricants in the manufacture or processing of goods for sale or in mining or in the generation or distribution of electricity or any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacture as raw material or components. In the case of Modvat credit, no such restriction of usage as raw material or components is prescribed. Even use in relation to manufacture is permissible so long as it does not get excluded by the explanation. Even in a restricted context under Notification 201/79-C.E., the Special Bench has taken the view that this item can be regarded as input and is eligible for exemption under Notification 201/79. Hence we are fortified that in the liberalised context of Modvat Rules without restriction of usage as raw material or component, there is no jurisdiction for denying the Modvat credit in regard to this item. Accordingly, while allowing the appeal filed by M/s. Gujarat Alkalies and Chemicals Ltd., w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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