TMI Blog1991 (11) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... cid (b) Sulphuric Acid (c) Hydrazene 100% (d) Sodium Sulphate. 2. The learned Collector (Appeals) has held as under in his order : I find from the above that it is not clear as to how it can be said that Hydrochloric acid is used for maintenance of machinery. If Hydrochloric acid is used for demineralisation of water which is to be turned into steam in part and to be utilised for spraying on the pulp, in the case, it cannot be called that demineralised water obtaining which hydrochloric acid is used, that such acid is used as a part of plant and machinery or for their maintenance. Therefore, there being no doubt of the use of Hydrochloric acid, in and in relation to manufacture of the final products, MODVAT Credit in respect of h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e part of the machinery and maintenance of the machinery". 3. In the grounds of appeal, the Appellant-Collector has urged as under : Collector of Central Excise (Appeals), Madras held that the Hydrochloric Acid used for demineralisation of water cannot be called as a part of plant machinery or for their maintenance. He has however, held that the same Hydrochloric acid is eligible for MODVAT Credit inasmuch as there is no doubt of the use of Hydrochloric acid in or in relation to manufacture of the final products. In respect of sulphuric Acid, he has held that it is also used for the same purpose as Hydrochloric acid in water treatment and hence eligible for MODVAT Credit. Further the Collector (Appeals) has held that Hydrazene 100% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Further Hydrochloric Acid is used for recouping the original strength of the resin in the water treatment plant and demineralisation plant. This resin becomes a part of machinery. As per Rule 57A of C.E.R., 1944 plant and machinery are not eligible for MODVAT Credit. (2) Sulphuric Acid. Sulphuric acid is also used for the same purpose as Hydrochloric acid in water treatment plant. Applying the ratio of the grounds of appeal Hydrochloric Acid, it is submitted that the Sulphuric Acid used in the manufacture of steam and used in the water treatment plant is not eligible for MODVAT Credit as per Rule 57A of C.E.R., 1944. (3) Hydrazene 100%. Hydrazene 100% is used as oxygen S.C.avenger (de-oxidant) to carry the oxygen in the boiler water ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me time we have held that the process which is in the nature of heat treatment of water can be taken to be process in or in relation to the manufacture of paper and the inputs used therein would be eligible for the benefit of MODVAT Credit even when the treated materials are used in the manufacturing stream of the finished goods either directly or by further process like generation of steam from water. In the present case we find that use of the Hydrochloric Acid is for demineralisation of water which has turned into steam. Specific use of Hydrochloric Acid resulted in the treated water fit for generation of steam after demineralisation of the same. This treatment has been done at a stage anterior to the start of the manufacturing process f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DVAT Credit. In regard to the other chemicals the position is, however, different. Hydrochloric acid is used for cleaning of the wire mesh as and when the same is found to have been clogged. The question is whether this cleaning operation can be considered to be a process of manufacture. Admittedly it is a process of maintenance of the wire mesh to keep it in the desired condition. Therefore, it cannot be said to have been used in the process of manufacture of paper. However, a point can be made that the same is used in relation to the manufacture of paper. The expression used in relation to the manufacture of paper no doubt has a wider meaning than the words in the manufacture , in the context of the credit Scheme and, therefore, it can ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
