TMI Blog2013 (3) TMI 320X X X X Extracts X X X X X X X X Extracts X X X X ..... that process, would fall within the expression in the manufacture of goods”. The expression “in the manufacture” takes in within its compass, all processes which are directly related to the actual production. It is too late in the day to take the view that the treatment of effluents from a plant is not an essential and integral part of the process of manufacture in the plant. The emphasis that has rightly been laid in recent years upon the environment and pollution control requires that all plants which emit effluents should be so equipped as to rid the effluents of dangerous properties. The apparatus used for such treatment of effluents in a plant manufacturing a particular end-product is part and parcel of the manufacturing process of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailed Cenvat credit on the cement used for treating the effluent Jarosite before dumping it in the land fill. The Department was of the view that since exclusive use of cement was to treat the effluent and that it was not used in connection with the manufacture of final product, the appellant was not entitled to Cenvat credit. Accordingly, show cause notice proposing to disallow Cenvat credit availed by him and to recover the amount was issued to the appellant. Notice also proposed to impose penalty on the appellant. Show cause notice was adjudicated by the Commissioner vide order-in-original dated 22-2-2012 whereby the Commissioner disallowed the Cenvat credit of the duty paid on the cement availed by them and ordered recovery of the abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. AR for Revenue has strongly opposed the stay application. He has argued in support of the impugned order and submitted that undisputedly, the cement regarding which Cenvat credit has been availed by the appellant was used only for treating the efluent generated in the manufacturing process which has no direct or indirect connection in the manufacture of final product of the appellant company. Thus it is argued that the Commissioner has rightly disallowed the Cenvat credit and confirmed the same with interest and penalty. 5. We have considered the rival contentions and perused the records. The issue involved for the purpose of disposal of this application is whether or not the use of cement for treatment of toxic effluent generated du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the ultimate production of goods that, but for that process, manufacture or processing of goods would be commercially inexpedient, articles required in that process, would fall within the expression in the manufacture of goods . This was a reiteration of the view expressed in M/s. J.K. Cotton Spinning Weaving Mills Co. Ltd. v. Sales Tax Officer, Kanpur and Another - 1965 (1) SCR 900. It was there held, The expression in the manufacture takes in within its compass, all processes which are directly related to the actual production . In Collector of Central Excise, New Delhi v. M/s. Ballarpur Industries Ltd. - (1984) 4 SCC 566, the respondent manufactured paper and paperboard, in the processes relating to which sodium sulphate is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rid the effluents of dangerous properties. The apparatus used for such treatment of effluents in a plant manufacturing a particular end-product is part and parcel of the manufacturing process of that end-product. The ammonia used in the treatment of effluents from the urea plant of the appellants has, therefore, to be held to be used in the manufacture of urea and the raw naphtha used in the manufacture of such ammonia to be entitled to the said exemption. From the above enunciation of law by the Apex Court prima facie it is clear that use of cement for treatment of effluent generated during manufacture of zinc, lead and sulphuric acid has to be taken as user in the manufacture of those final products. Thus in our considered view the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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