TMI Blog1996 (7) TMI 216X X X X Extracts X X X X X X X X Extracts X X X X ..... 28/CE/CHD/95, dated 29-9-1995 passed by Collector (Appeals), Central Excise, Chandigarh. 1.2 The issue that falls for determination is the admissibility or otherwise of Aluminium Oxide used in removing impurities in Aluminium scrap which in turn is used in the manufacture of piston rings, and cylinder liners. 2. Arguing for the Revenue, the Ld. D.R. submits that Aluminium oxide has no direct u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. I have heard both sides. In case of C.C.E. v. Ballarpur Industries Ltd. - 1989 (43) E.L.T. 804 (SC) the Hon ble Apex Court held that Sodium Sulphate used for Chemical reaction at pulp stage is treatable as raw material used in the manufacture of paper even if Sodium Sulphate is burnt up and does not retain identity in the end product. The Hon ble Apex Court observed that question whether such i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material or component part of the end product and must be deemed to have been used in completion or manufacture of the end product. 4.3 Explaining the meaning of the phrase in relation to , the Tribunal in case of Andhra Pradesh Paper Mills Ltd. v. C.C.E., reported in 1990 (50) E.L.T. 252 (Tri.) held that the expression in relation to has to be read in the context of the manufacturing proces ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... includes the process and inputs essential or incidental or accessory to the completion of manufacture (including deemed manufacture) but any item or process which is essential for making the final product marketable. 4.5 Phosphoric Acid which is added to the cane juice in a sugar mill for clarification of juice was held to be admissible input. In case of Rahuri Sahkari Sakhar Karkhana Ltd. v. C. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osives Ltd. v. C.C.E.- 1990 (50) E.L.T. 117 it was held that chemicals and resins used for water treatment and then for manufacture of steam which was used for drying paper, were also eligible for Modvat credit, since the production of steam is connected or integrated process in the manufacture of paper. 5. It was admitted by the Ld. D.R. that in removing the impurities from the scraps Aluminium ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
