TaxTMI 
TaxTMI 
1998 (10) TMI 218
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.... claim the benefit of Notification No. 201/79-C.E. in respect of carbon paste used in the manufacture of ferro silicon. In this regard, the Assistant Collector had relied on the judgment of CEGAT in the case of M/s. Nav Bharat Ferro Alloys Ltd. in Appeal No. ED (MAS) 368/83. The Collector (Appeals) observed that as per the terms of the Notification No. 201/79-C.E., only raw materials and component parts are known as inputs and credit of duty paid on such inputs can only be taken for purpose of paying duty on the finished product. He held that in terms of the meaning of the word "raw material" as per the Webster's New Collegiate Dictionary, carbon paste cannot be considered as a raw material. He did not agree with the CEGAT judgment rendered....
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.... the ingredients used in the chemical technology of manufacture of any end product might comprise, amongst others, of those which may retain their dominant individual identity and character throughout the process and also in the end product; those which as a result of interaction with other chemicals of ingredients might themselves undergo chemical or qualitative changes and in such altered form find themselves in the end product; those which, like catalytic agents, while influencing and accelerating the chemical reactions, however, may themselves remain uninfluenced and unaltered and remain independent of and outside the end product and whose which might be burnt-up or consumed in the chemical reactions. The Hon'ble Supreme Court raised a ....
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....pplication and consideration. Subsequent judgment in the case of Ferro Alloys Corporation Ltd. rendered by this Bench as reported in 1985 (22) E.L.T. 820 (Tribunal), loses its importance, in view of the earlier judgment rendered in the case of Sandur Manganese & Iron Ores Limited, which passes the tests laid down by the Supreme Court in the above cited case. He also referred to the judgment rendered in the case of CCE v. Amritsar Bottling Co. as reported in 1996 (84) E.L.T. 447 (Tribunal), which has applied the tests of Supreme Court judgment and held that activated carbon used as a catalyst during the process of purification and deodorisation of sugar syrup which is in turn used in the manufacture of aerated waters, is eligible for set off....
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....king into the technical aspects as discussed in the earlier judgment of Sandur Manganese and Iron Ores Ltd. which held that the carbon paste is entitled for the benefit of the proforma credit, when it is used in the manufacture of ferro silicon. We notice that the Hon'ble Supreme Court in the above cited case has clearly gone into the aspect of definition of the raw material is required to be granted the benefit of notification. The Tribunal in the case of Ferro Alloys Corporation Ltd. clearly held that the primary purposes of carbon paste was to make a baked electrode. It went on the basis of such a carbon electrode and held that it could not be treated as a raw material. However, we notice that without this carbon electrode ferro silicon ....