TMI Blog2016 (12) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... used in the manufacture of final product. Therefore the use of Ceramic Balls for processing of raw material for the manufacture of final products. The processing of manufacture start from of the raw material stage up to the manufacture of final product. It is used for conversion of non-purified Ethylene to purified form. Therefore the Ceramic Balls are used in the manufacturing process - The very same issue has been decided by this Tribunal in favor of the appellant as per the Tribunal decision in the case of Reliance Industries Ltd. [2000 (1) TMI 85 - CEGAT, MUMBAI], where the credit was allowed. As regard Ethyl Alcohol, we find that the same is pumped to MEG plant by vertical pumps at minus 130 degrees and its leakage to atmosphere is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned Counsel for the appellant along with Ms. Shilpa Balani, Learned Counsel submits that dispute is about the admissibility of the MODVAT credit in respect of inputs namely Ceramic Balls and Ethyl Alcohol. He submits that Ceramic Balls are used for the de-sulphurication of feed stock Ethylene viz: to purify the basic raw material. This process of raw material is vital for the manufacture of specified final products, otherwise without such processing, manufacturing of final product cannot be possible as the use of un-purified raw material would result either in a disruption of the production process and/or result in the emergence of off-specification final products. He submits in the appellants own case i.e. Reliance Industries Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p to the manufacture of final product. It is used for conversion of non-purified Ethylene to purified form. Therefore the Ceramic Balls are used in the manufacturing process. The very same issue has been decided by this Tribunal in favour of the appellant as per the Tribunal decision in the case of Reliance Industries Ltd. (supra). As regard Ethyl Alcohol, we find that the same is pumped to MEG plant by vertical pumps at minus 130 degrees and its leakage to atmosphere is extremely hazardous. The Ethyl Alcohol is circulated in the pump seals which act as barrier for preventing leaks of Ethylene. In our considered view this process is part of the manufacturing of final products. As per the above discussion we are of the considered view ..... X X X X Extracts X X X X X X X X Extracts X X X X
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