2000 (10) TMI 355

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....Shri T.D. Bodade, JDR, for the Respondent. [Order per : Gowri Shankar, Member (T)]. - The appellant was engaged in the manufacture of soap, out of vegetable oil. This process of manufacture requires hydrolysis of the vegetable oil i.e. breaking down of the oil into glycerine and fatty acid, in which process pitch emerges as waste. The appellant hydrolysed oil purchased by it utilises the res....

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....turning the quantities of fatty acid to HLL, it reversed the credit so taken on pro rata basis of the finished quantity. It retained the credit remaining, utilising it towards payment of duty for manufacture of soap. 2. Notice issued proposing disallowance of the credit taken on the ground that the fatty acid supplied to HLL, which was the finished product was exempted from duty and theref....

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....utilised by the appellant in its own factory for manufacture of soap. In that steam of manufacture, the fatty acid cannot be considered to be a final product; it is an intermediate product, emerging in the transformation of the oil of soap hydrolysis. The reasoning of the Commissioner (Appeals) that the appellant was not a manufacturer of soap in respect of the oil obtained from HLL, would not hol....