1993 (11) TMI 123

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.... Film and Sheets falling under erstwhile T.I. 15A. They were using certain inputs namely (1) MIBK-NOCIL; (2) TOLOENE - INDIAN OIL; and (3) CYCLO HEXANE - GSFC as a solvent for diluting printing ink, which are used for printing PVC Sheets. The respondents were availing of set-off of duty paid on these solvents, in terms of Notification No. 201/79 dated 4-6-1979. 2. The Show Cause-cum-Demand Notices were issued by Range Superintendent on 26-4-1984 and 25-6-1984 for Rs. 13,226.40 and Rs. 29,943.49 for contravention of the provisions of Notification 201/79 dated 4-6-1979 on the grounds that the said credit taken during the period 3-8-1979 to 16-4-1984 on the solvents falling under T.I. 68 is inadmissible as the solvents which are used for pr....

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....al Industry -1986 (26) E.L.T. 561 holding that carbon paste used in an electrode in the manufacture of Calcium Carbide cannot be treated as raw-material under Notification 201/79 as it has nothing to do with the final product, calcium carbide. It was argued that the solvents in this case are not inputs because they do not participate in the manufacturing process of PVC sheets/films which are the final products. After printing of sheets with diluted printing ink they are passed through heated chamber where the solvents get evaporated. Therefore, the ld. D.R. urged that Collector (Appeals) was in error in holding that solvents in this case are eligible for exemption under Notification 201/79. 6. Shri Vinayak Y. Thakur, Manager Excise, of t....