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TMI Blog1998 (9) TMI 200X X X X Extracts X X X X X X X X Extracts X X X X ..... & (b) it is gradually used-up in this process. 2. E/255/90 is another Revenue appeal against Order-in-Appeal No. 22/90-(BM), dated 23-2-1990 passed by Collector (Appeals) on the same issue. 3. These were therefore heard together, and by common consent, are being considered by this common order. 4. Briefly, the item Copper Flexible are used in the manufacture of Caustic Soda by Electrolysis as follows :- "In the electrolytic cell the electrolyte brine is subjected to electrolysis by the application of an electric current, which flows from the metal anode to the flowing mercury cathode. The anode and the cathode are kept at a distance apart which is highly critical for the efficient electrolysis of the brine. The gap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ile in Final Order No. 328/96 in the case of M/s. Binani Zinc, the Tribunal had allowed Modvat credit to copper aluminium transaction joints as they were welded to anode and hence were regarded as its extension, in the case of Final Order No. 594/96, dated 15-4-1996, the same Tribunal, in the case of Indian Aluminium Co. had disallowed the Modvat credit to a similar conductor on the ground that it was merely a link between the electrolytic bath and the electricity transmission mechanism (bus bar) and therefore not an electrode. 7. Learned Advocate submits that a Departmental Circular & Belgaum Commissionerate Trade Notice of 1990 is not binding on this Tribunal & has been upset by subsequent decisions. He cited decision of Tribunal in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in such a situation, the current flows from anode to cathode, through the brine. We also find that over a long period of time, the said copper flexible either corrodes and or suffers from reduced conductivity and then needs to be replaced by a new one, as a normal periodic maintenance procedure. Therefore, it would not be correct to say that it gets "consumed" in the electrolytic process unlike an welding electrode which gets deposited on the welded surface. We further find that the said copper flexible is also used for emergency short circuiting of the cell. This short circuiting can be done in two ways, at least logically. Either one of the electrodes is disconnected from the system by taking it physically out of the bath (cell) and conn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these, the ratio of this Tribunals order in the case of Indian Aluminium clearly applies here. The case-law regarding sheet used for pressing plywood is also with respect to a different manufacturing process. 10. This still leaves the question of whether the copper flexible becomes an extension of the anode because it is welded to is or not, unanswered. But with great respect, we are unable to agree with the views of the Hon'ble Tribunal in the Order No. 388/96 in the case of Binani Zinc. Therein it was held that as the conductor was welded to the anode, it became a part of the anode. This assumption we cannot accept for the simple reason that some conductor has always to be somehow fastened to both the anode and the cathode. These in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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