TMI Blog2018 (11) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... modvatable inputs is available even if intermediate product is exempt from duty, but final output is dutiable. As such it was held that plaster of paris used in making of moulds which in turn are used as inputs in relation to the manufacture of sanitaryware, would be eligible to exemption under Notification No.217/87-CE, which was an exemption on account of captive consumption. Inasmuch as, admittedly, the DM water comes into existence during the course of manufacture of the final product and is used captively, the same has to be held as an intermediate product and not a final product. In such a scenario, the same would earn exemption of captive consumption Notification No.67/95-CE dated 16.3.1995. Appeal allowed - decided in favor o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which is not disputed by the Revenue. For better appreciation, the same is reproduced below:- To manufacture sulphuric acid, molten sulphur is burnt in the air and SO2 gas is generated. This SO2 gas is required to be converted to SO3 for the manufacture of sulphuric acid. These processes are highly exothermic that is chemical change that is accompanied by a liberation/generation of heat. The temperature at the point of conversion of SO2 gas will be around 600 degrees cent. For the conversion of SO2 into SO3 the desired temperature level should be in the range of 400 degrees cent. To bring down the temperature to the desired level at the reaction vessel, water is circulated in the exterior part of the reaction vessel, water is circulat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffect is the Tribunal decision in the case of Haldyn Glass Ltd. vs. CCE, Mumbai-IV 2005 (187) ELT 263 (Tri.-Mumbai). Further, the Tribunal in the case of IPCL Ltd. vs. CCE, Vadodara 2004 (178) ELT 656 (Tri.-Mumbai) and Rashtriya Ispat Nigam Ltd. vs. CCE, Vishakapatnam 2002 (150) ELT 743 (Tri.- Bang.), has held to the same effect. 6. Inasmuch as, admittedly, the DM water comes into existence during the course of manufacture of the final product and is used captively, the same has to be held as an intermediate product and not a final product. In such a scenario, the same would earn exemption of captive consumption Notification No.67/95-CE dated 16.3.1995. 7. By following the ratio of the above decisions, we set aside the imp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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