Customs, Excise and Gold Tribunal - Mumbai
Laxmi Organic Industries Ltd. vs Commissioner Of Central Excise And ... on 31 October, 2001
Equivalent citations: 2002(140)ELT123(TRI-MUMBAI)
JUDGMENT
Jyoti Balasundaram, Member (Judicial)
1. The issue in this appeal relates to the availability of Modvat credit of Rs. 51,991/- on "Crotonaldehyde" used to denature Ethyl Alcohol which in turn is used as an input in the manufacture of the appellants final products. Acetic acid and acetaldehyde. The authority below have disallowed the credit holding that the item in question is not required in the manufacturer of the final product, as the final product can be manufactured even without the use of this input which is only used so as to render Ethyl Alcohol unfit for human consumption as per the requirements of the State Excise Department.
2. There is no dispute that Crotonaldehyde is used to denature of Ethyl Alcohol, which is then used in the manufacturer of the appellants final product. Therefore it is definitely an input which is used in relation to the manufacture of the final product. Applying the ratio of the decision of the Hon'ble High Court of Calcutta in the case of Singh Alloys & Steel 1993 (66) ELT 594 which has been followed by the larger bench of the tribunal in the case of Union Carbide India Ltd., v. Collector of customs excise, Calcutta 1996 86 ELT 613. Following is the ratio of the above decision, I hold that the appellants are entitled to Modvat credit on the item in question, Set aside the impugned order and allow the appeal.
(Pronounced in Court)