Manufacturing process nexus extends excise benefit to a boiler used for steam in liquid glucose production.

A boiler used to generate steam for manufacture of liquid glucose was treated as integrally connected with the manufacturing process and as used in or in relation to manufacture. On that reasoning, the equipment qualified for benefit under Rule 57Q because the steam formed part of the manufacturing stream of the final product. The stated result was that the assessee's claim was accepted and the benefit was held admissible for the boiler in the connected process.

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Issues: Whether the boiler used in the manufacture of steam, which was in turn used in the manufacture of liquid glucose, was eligible for benefit under Rule 57Q.

Analysis: The relevant test was whether the equipment was integrally connected with the manufacturing process of the final product and formed part of the process used in or in relation to manufacture. The boiler was used for producing steam, and that steam was employed in the manufacture of liquid glucose. The process was therefore treated as part of the manufacturing stream of the final product, and the earlier view relied on by the Tribunal supported such eligibility.

Conclusion: The boiler qualified for the benefit under Rule 57Q and the claim was accepted in favour of the assessee.

Final Conclusion: The appeals succeeded, and the benefit under Rule 57Q was held admissible for the boiler used in the connected manufacturing process.

Ratio Decidendi: Equipment that is integrally connected with the manufacturing process and is used in or in relation to the manufacture of the final product is eligible for the intended excise benefit.

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