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M/s Hindustan Zinc Ltd Versus Commissioner of Central Excise And Service Tax Jaipur

Denial of CENVAT Credit - appellant availed cenvat credit on the cement used for treating the effluent jarosite before dumping it in the land fill - Held that:- In Indian Farmers Fertilisers Coop. Ltd. (1996 (7)141 - SUPREME COURT OF INDIA), the issue came up before the Hon'ble Apex Court for directions to agricultural plant wherein the Apex Court has held that the apparatus used for treatment of effluent in a plant manufacturing a particular end-product is a part and parcel of the manufacturing .....

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of 2014 - A/52585-52589/2015-EX(DB) - Dated:- 13-8-2015 - Ashok Jindal, Member (J) And B Ravichandran, Member (T) For the Appellant : Shri B L Narsimhan, Shri Kipul Agarwal, Advs For the Respondent : Shri M S Negi, DR ORDER Per Ashok Jindal The appellant is in appeals against the impugned orders denying cenvat credit consequently demand of duty along with interest and imposition of penalty. As issue involved is common in all the appeals, therefore, all are taken up together and are disposed of b .....

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d for treating the effluent jarosite before dumping it in the land fill. The Revenue is of the view that since exclusive use of cement was to treat the effluent and it was not used in connection with the manufacture of final product, therefore, appellant is not entitled to take cenvat credit on cement so used. On the said allegation, several show cause notices were issued to deny the cenvat credit on the cement. Those show cause notices were adjudicated and cenvat credit was denied. Consequently .....

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the submissions. 6. In the case of Indian Farmers Fertilisers Coop. Ltd. (supra), the issue came up before the Hon'ble Apex Court for directions to agricultural plant wherein the Apex Court has held that the apparatus used for treatment of effluent in a plant manufacturing a particular end-product is a part and parcel of the manufacturing process of end-product. We further find that Hon'ble Apex Court has observed as under: "6. The excise authorities and the appellants filed appeals .....

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d other process equipment from corrosion, formation of scales, etc., the ammonia used for the purpose could not be said to be used in the manufacture of fertilisers. The view of the Collector, insofar as the effluent treatment plant was concerned, was upheld. 8. For our conclusion we draw support from the judgment of this Court in Collector of Central Excise, Calcutta-II v. Eastend Paper Industries Ltd.-1989 (43) E.L.T. 201 = 1989 (4) SCC 244 , where it was held, "Where any particular proce .....

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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 used in the chemical recovery cycle of sodium sulphate which forms an essential constituent of sulphate cooking liquor used in the digestion operation". T .....

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nd-product ........." and observed that, correctly apprehended, that statement did not lend itself to the understanding that for something to qualify itself as a raw material it had necessarily and in all cases to go into and he found in the end-product. The court also quoted with approval the case of Eastend Paper Industries Limited cited above. 9. That leaves us to consider whether the raw naphtha used to produce the ammonia which is used in the effluent treatment plant is eligible for th .....

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duct 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." 7. Further, the Hon'ble Madras High Court in the case of CCE, Coimbatore vs. Madras Aluminium Company Ltd. [2008 (226) ELT 342 (Mad)] has held as under: 2. The primary .....

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E., Ahmedabad, 1996 (86) E.L.T. 177 (S.C) - AIR 1996 SC 2542 . In that case raw naptha was obtained at the concessional rate and used for producing ammonia which in turn was used partly, directly in the urea plant and partly, indirectly in the production of urea by being employed in off-site plants, namely, water treatment plant, steam generation plant, inert gas generation plant and effluent treatment plant, all of which were part of the integral process of the manufacture of urea. After taking .....

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o consider whether the raw naphtha used to produce the ammonia which is used in the effluent treatment plant is eligible for the said exemption. 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 effl .....

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