1987 (5) TMI 133

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....rtue of Notification 201/79, dated 4-6-1979 the Central Government exempted all excisable goods on which duty of excise was leviable and in the manufacture of which goods falling under Item 68 had been used from so much of the duty of excise leviable thereon as was equivalent to the duty of excise already paid on the inputs. The notification prescribes the procedure for the application of the notification. The Appellants were taking proforma credit in regard to the raw materials used by them in manufacturing aluminium. The unutilised credit of excise duty amounted to Rs. 1,51,874.59 as on 28-2-1982. Notification 201/79 underwent an amendment by virtue of Notification 105/82, dated 28-2-1982. After the publication of the Notification 105/82 ....

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....of 105/82 was allowed. Similarly, in 1985(22) E.L.T. 594 [Andhra Sugars Ltd. v. C.C.E., Guntur] the Tribunal considered Barium Carbonate as a necessary chemical in the manufacture of Caustic Soda by electrolytic process. He submitted that the ratio of these rulings would apply to the facts of this case. 4. Shri H.L. Verma, S.D.R., urged that the Appellants have not set out in detail the chemical reactions in the use of these items and hence the ratio of the decisions would not apply. 5. The point for consideration in this Appeal is whether the Appellants are entitled to the benefit of Notification 201/79, as amended by Notification 105/8, in the use of the chemicals Cryolite, Aluminium Fluoride and Fluorspar in the manufactu....

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....ials. In the earlier order relating to Hindustan Aluminium the Tribunal considered that Cryolite was used to dissolve the Alumina at the operating temperature of the bath. Aluminium Fluoride is added from time to time in order to maintain a suitable sodium. Fluor Spar helps the lowering of the melting point. It is, therefore, obvious that these items are raw materials, i.e. items which go into the manufacture of aluminium. It was urged on behalf of the Department that a raw material should be one that served as the starting point of a manufacture or technical process or that out of which something was made or makable or that may develop. If the use of these materials is inescapable and it would not be possible for manufacture of aluminium o....