2000 (1) TMI 614

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....hemocide - 803 5. Other Organic compounds (i) Sugret - 24 (ii) Pan Thril. 2. Nobody has appeared on behalf of the respondents. I have heard Shri R.K. Roy, ld. JDR. 3. As regards the Lubricating Oils and Lubricating Greases benefit has been extended to the respondents by following the ratio of the various decisions of the Tribunal. The Revenue has referred to a single Member decision (Northern Bench) in the case of Kanoria Sugar & General Mfg. Co. Ltd. - 1996 (87) E.L.T. 522. I find that thereafter law has evolved and there are number of decisions including one in the case of Pragati Paper Mills (P) Ltd. v. Collector - 1996 (88) E.L.T. 138 (Tribunal) vide which it has been held that Lubricating Oil is ....

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....12 after taking into consideration the entire case law on the point, Tribunal has refused to refer the matter to the larger Bench or to the Hon'ble High Court. In view of this I do not find any infirmity in the order passed by the Commissioner (Appeals) as regards the Lubricating Oils and Greases. 4. In respect of Caustic Soda, the Commissioner (Appeals) has observed the same is used in evaporators and pans for softening the scales of the tubes and for cleaning the deposits. The item is also a water softening chemical. Relying upon the judgment of Tribunal in the case of Saurashtra Chemicals v. C.C.E., Rajkot - 1995 (80) E.L.T. 302 (Tribunal), he has extended the benefit in the items. Shri Roy argues that the facts in the said case ....

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....rving that though the role is indirect but the same is used in relation to the manufacture of the sugar he has extended the benefit. The Revenue is aggrieved with this on the ground that their product is not used for direct manufacture of sugar and there is no judicial ruling in respect of the said item. It is observed that direct presence of the input in the manufacture of the final product is not the criteria for extending the benefit of Modvat and it has been held in a number of judicial pronouncements that the term 'in or in relation to the manufacture of' is a very wide term and even if the product is not being used directly in the manufacture of the final product, but indirectly in relation to the manufacture of the final product, the....