TaxTMI 
TaxTMI 
2000 (12) TMI 414
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....ufacture of the final product, while the Assistant Commissioner on a detailed examination of the process of manufacture has taken a view that silicon carbide is used in the manufacturing process of zinc oxide and it has to be termed as an input - (i) which helps in increasing the heat inside the crucible; and (ii) which aids in giving zinc oxide the colour and certain other physical and chemical properties. Further findings given by the Assistant Commissioner in Order-in-Original on the basis of manufacturing process are noted hereinbelow :- To examine this issue the manufacturing process of Zinc Oxide and the use of Silicon Carbide crucible could be stated. The Zinc metal is broken to be the required size and charged into the....
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....e manufacturing process is only fixed clay. Further steel crucibles are fitted everytime after a particular quantity of production levels by 25MT. The higher degree of melting point for Silicon at 1410ºC compared to the melting point of 418ºC for zinc, supports the assessees' claim that the product helps in increasing the heat inside the crucible is agreeable. Also the property of iridiseence is that they will product fine colours on a surface. In the case of SAE (India) Ltd. v. Collector of Central Excise as reported in 1992 (61) E.L.T. 724 (New Delhi - CEGAT), the Tribunal held that lead used in galvanisation of M.S. Steel products was eligible for Modvat credit, even though it was not present in the final product. The Tribunal....
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.... E.L.T. 552 (T), The Revenue is of the opinion that the case is covered by the judgment rendered in the case of Mukund Iron & Steel Works Ltd. v. CCE as reported in 1990 (45) E.L.T. 84, wherein refractory bricks and other similar products were considered as constructional material used in lining the furnace and held to be not eligible for Modvat credit. However, the Commissioner has not adverted to the details of manufacturing process and also to the extraction of material evidence pertaining to such manufacture as recorded in para 5 of the Order-in-Original from the Encyclopaedia of Chemicals, Biologicals, The Merck Index 1983 (X Edition), wherein the silicon carbide is described as follows :- "Csi; Molecular weight 40.07, Carbon 29.97%,....
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....pra) is clearly distinguishable as in that case there was no involvement of the equipment in the manufacture and going into the final product. They relied on the judgment of Hindalco Industries Ltd. v. CCE as reported in 1996 (88) E.L.T. 519, wherein it was held that refractory cement and high alumina refractory cement used for lining of various furnaces so as to withstand the high temperature, thermal shock and to act as insulating material so as to conserve heat in the furnace are eligible as input vide Rule 57A of Central Excise Rules. Further reliance is also made in the case of Widia (I) Ltd. as reported in 1996 (83) E.L.T. 373, wherein this Bench held that argon gas being a technical necessity in manufacture of tools and tool tips, el....
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....manufacturing process, so long as an item is used in the process of manufacture and it is not covered by the excluded categories in the Explanation to Rule 57A, the benefit of Modvat credit will have to be given. Large number of citations have been referred to in the said judgment. 2. Heard Sri Bansal, partner of the appellant company for the appellants and learned SDR for the Revenue. Both sides reiterated their respective views as projected in the written submissions as well as in the impugned order. 3. On a careful consideration of these submissions, I notice that the Assistant Commissioner has gone into great detail with regard to the process of manufacture of zinc oxide. He has noted the technical definition of silicon carb....