Customs, Excise and Gold Tribunal - Mumbai
Collector Of Central Excise And Customs vs Polychem Ltd. on 20 August, 1993
Equivalent citations: 1994(74)ELT928(TRI-MUMBAI)
ORDER R. Jayaraman, Member (T)
1. The Reference Application has been moved by the Revenue in respect of this Bench Order No. 1792/92-WRB, dated 28-10-1992. This Bench in the aforesaid order held that HCL used for water treatment and purification, before conversion of the same into steam, which in turn is used in the manufacture of Vinyl Acetate Monomer is eligible for Modvat Credit. The questions framed by the Collector are reproduced below :-
(i) When input does not constitute an input even for intermediate product, rather it is not essential for manufacture of intermediate product, whether duty paid on such input can be allowed for making payment of duty on final product in view of Rule 57D(2);
(ii) Whether the order dated 4-6-1992 passed by Collector (Appeals), Customs & C. Excise, Pune was bad in law.
2. Shri Mondal, the Ld. SDR, moving the application stated that the only question is whether steam, which is a final product, which is exempted and the chemicals being used therein as input should be construed to be eligible for Modvat Credit for being utilised against the duty payable on Vinyl Acetate Monomer.
3. After hearing both the sides, I find that from the question as framed by the Collector, nothing tangible is emerging as a question of law, because Question No. 2 relates to the order passed by the Collector (Appeals) and no reference can be made to the High Court with reference to the order passed by the Collector (Appeals). Question No. 1 is also lacking clarity. Based on the plea made by the Ld. SDR, Shri K.M. Mondal, I find that there is no question calling for reference to the High Court in view of the settled law by the Apex Court 'that in the case of Eastend Paper Mills - 1989 (43) E.L.T. 201, which has held in chear terms that anything required to make the goods marketable and all processes required for that are to be construed as in the process of manufacture of the final product. For obtaining steam (which is necessary for manufacture of VAM) if certain chemicals are needed for purification of water, they have to be construed as inputs, for VAM, even if such chemicals are used for obtaining steam at the first stage. This view has been taken by the East Regional Bench also in an identical issue. Hence, in view of the law laid down by the Apex Court as above, Reference Application is not called for and is rejected.
4. Cross Reference Application, in the nature of reply to the Reference Application, is also treated as disposed of.