TaxTMI 
TaxTMI 
1994 (10) TMI 178
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....Acetylene; (c) Dextrine; (d) Grinding Wheels; (e) Thinner Bond, Binders, Resins, Zirconal. For the production of the goods in question requirement of various other inputs have also been set out by the appellant Company in Annexure : A to the appeal memorandum. Their functions are, however, not rebutted by the Department. They are as follows : - (a) Dissolved acetylene gas alongwith oxygen is used for gas weld repair and gas-cutting of the scrap as mentioned above. (b) Grinding Wheel : Abrassive Grinding Wheel is extensively used in the Fettling Shop and also in the final stage. During their use, the Wheels are worn out and frequent replacements are required. (c) Mould : Preparation of the Sand Mould and Sand ....
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....ubmits that the issue involved in the instant cases has already been dealt with by the Tribunal in the case of Hindustan Motors Ltd. v. Collector of Central Excise, reported in 1993 (63) E.L.T. 723 (Tribunal). 3. Since the issue has been decided in that case in favour of the Hindustan Motors Ltd. a similar treatment may be given to the appellant Company as well. He has also drawn our attention to the fact that in a Reference Application filed by the Department in the case of Collector of Central Excise v. M/s. Hindustan Motors, a reference has also been made by the Tribunal as reported in 1994 (71) E.L.T. 966 = 1994 (50) ECR 580 (Tribunal). The precise question which has been referred to the Honourable High Court of Calcutta is as f....
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....6 = 1994 (50) ECR 580 (Tribunal) supra. They are as follows : - (a) 1990 (50) E.L.T. 50 = 1991 (35) ECR 120 (CEGAT) : WRB) in Shivaji Works Ltd. v. C.C.E, Sholapur; and (b) 1990 (50) E.L.T. 175 = 1990 (31) ECR 209 (CEGAT : SRB) in Mysore Kirloskar Ltd. v. C.C.E., Belgaum. 6. It may be noted at this stage that the Hon'ble Madras High Court in Ponds (India) Ltd. v. Collector of Central Excise, reported in 1993 (63) E.L.T. 3 (Mad.) at para 23 has held that the Tribunal's decisions in the cases of Shivaji Works Ltd. and Mysore Kirloskar Ltd. supra, are not correct. Accordingly, the Judgments of W.R.B. and S.R.B. can be deemed to be overruled by Madras High Court. In this connection para 23 of the said Report is reproduced : - ....
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....e of manufacture of the final product and that such intermediate products are for the time being exempt from the whole of the duty of excise leviable thereon. Here again, for the term "manufacture", the abovesaid Section 2(f) definition read with the abovesaid Chapter Note No. 4 to Chapter 33 would apply and so, the abovesaid containers could be taken as the abovesaid "intermediate products" which have come into existence "during the course of manufacture of the final product". In such a case, the requirement mentioned in the proviso to Rule 57D(2) will stand satisfied since the abovesaid containers, the intermediate products, are admittedly "used within the factory of production in the manufacture of a final product" and specified as input....
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....D has not been defined. This Rule, it is to be noted, is meant to cover a vast variety of excisable goods not only to chemicals but also to other industrial and consumer goods. When the Department states that resins etc. i.e. the inputs, which are for consideration before us, have been utilised in the manufacture of sand moulds and not in relation to the manufacture of iron/steel castings, the Department is giving a narrow meaning to the expression, `intermediate goods'. The Department appears to be considering the single process of manufacture of goods. It forgets that there may be products, as in this case, that several preliminary processes of various goods are undertaken and those processes further converge into another process to make ....
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.... are produced below : Page 565 of the Condensed Chemical Dictionary "intermediate. - An organic compound, either cyclic (derived from coal tar or petroleum products such as benzene, toluene, naphthalene, etc.) or acyclic (e.g. ethyl and methyl alcohol). These compounds may be considered as chemical stepping stones between the parent substance and the final product. The cyclic type (e.g., aniline, beta-naphthol, and benzoyl-benzoic acid) still predominate as intermediates for synthetic dyes and have few other uses; the acyclic type in general have many independent uses. Exceptions are hexamethylenetetramine, an acyclic intermediate for phenolformaldehyde resin, and butadiene for synthetic elastomers. Intermediates are the foundation of....