TaxTMI 
TaxTMI 
1988 (2) TMI 210
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....he Electrolytic Cells in which the Electrolysis of Sodium Chloride takes place. These Electrodes are purchased by the respondents and duty under Tariff Item 68 was charged thereon. The respondents were refused permission to avail of the credit of the duty paid on these electrodes by way of set off in terms of Notification No. 201/79 by the Asstt. Collector for the reason that since these electrodes were part of the Electrolytic cells and equipment used in the manufacture of the Caustic Soda, the benefit of the notification could not be allowed. The Collector (Appeals) however, took note of the fact that Notification No. 201 of 79-CE extended the benefit of the set off in respect of Item 68 goods used in the manufacture of any finished excis....
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....se, the excisable goods manufactured is Caustic Soda. The Titanium Substrate Insoluble Anode though an item falling under T.I. 68 is not used in the manufacture of excisable goods, i.e. caustic soda but used as a part of electrolytic cells which is an ultimate part of caustic soda plant and does not form part of excisable goods i.e. the said goods, as such the same cannot be termed as input for the manufacture of excisable goods i.e. caustic soda. Thus it would be seen that Titanium Substrate Insoluble Anode, is not entitled to the benefit of set-off under Notification No. 201/ 79-C.E., dated 4-6-1979, not being input as held by Collector (Appeals) in the instant case. Further, it would be worth noting that Notification No. 201/79, dated 4....
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.... nature of raw materials going into the stream of manufacture. The'" learned advocate for the respondents Shri R.C. Desai pleaded that the electrodes were a consumable item and have a surface coating which gets worn out in 8-10 months. He pleaded that there are number of decisions of this Tribunal and the Supreme Court where it has been held that the words 'used in the manufacture of as used in the Notification 201/79 have a wider connotation and would cover even the goods which are not in the nature of raw materials but have nexus with the production of the goods. He pleaded that the Electrodes played a vital role in the manufacture of the goods. He cited the following Case Law in support of his pleas. (i) 1986 (25) E.L.T. 295, (ii) AIR 1....
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....artons' as packing container would be considered as an input as visualised in Notification 201/79 amended by the Notification No. 105/82 and duty paid on these cartons would be eligible for set-off. The ratio of these decisions show that for Item 68 goods utilised and consumed in this process of manufacture the benefit of Notification 201/79 would be available. The Tribunal in the case of Rockdril (India), Jodhpur v. Collector of Central Excise, Jaipur 1984 (17) E.L.T. have held that graphite moulds used in the manufacture of castings will be eligible for the benefit of set-off duty paid thereon when used in the manufacture of castings. 4. We also observe that the Hon'ble Supreme Court and the Tribunal in its various decisions have interpr....