1996 (10) TMI 336

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....i J.P. Kaushik and Ms. Ginny Bedi, Advocates, for the Respondents. [Order per : K.S. Venkataramani, Member (T)]. - This is an appeal against the order dated 5-2-1992 passed by the Commissioner of Central Excise (Appeals), Chandigarh. The brief facts are that the appellants manufacture soap falling under Heading 34.01 Central Excise Tariff Act, 1985. They are availing Modvat credit on inputs ....

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....puts for glycerine and hence the credit was inadmissible. (c) Nickle Catalyst is used for hardening of oils and hence is not used in or in relation to the manufacture of soap. (d) Indiflo perlite filteraid can not be treated as an input for the reason that it has got repeated use and its use is more for the maintenance of plant and machinery than as input. 2. The Assistant ....

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....msp;On a careful consideration of the submissions made by both the sides, we find that the order of the Commissioner (Appeals) holding caustic soda lye is an eligible input for Modvat purposes needs no interference. Regarding the use of caustic soda lye it is seen that as an alkali it is used for reacting with oil/fat in the process of manufacture of soap. It is a stage in the manufacture without ....

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....ese conditions under Rule 57D (2) in respect of caustic soda lye have not been fulfilled. The judgment of Madras High Court in the case of Ponds India Limited v. Commissioner of Central Excise, reported in 1992 (61) E.L.T. 3 (Mad.) would also go to support the case of the appellants. On this basis of the foregoing reasons, we hold that the order of Commissioner (Appeals) in respect of caustic soda....