TaxTMI 
TaxTMI 
1996 (7) TMI 496
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....aid on Titanium metal anodes used as anodes in electrolysis of Sodium Chloride Brine. Under this provision a manufacturer of specified final products is entitled to credit of specified duty paid on specified inputs used in or in relation to the manufacture of final products subject to the provisions of Section AA of the Rules and the conditions and restrictions that may be specified in any of the notification required to be issued under the Rules. The Explanation to the rule is in two parts; the first part is inclusive in nature and the second part is exclusive in nature. The exclusion clause has five sub-clauses. According to clause (i), for the purpose of the rule, "inputs" does not include machines, machinery, plant, equipment, apparatus....
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.... of machine etc. are not covered by exclusion sub-clause (i). 3. In view of the consistent response of the Tribunal in regard to the question in controversy, it is contended for the respondents that there is no question of law arising which requires to be referred to the High Court. According to the Department, there is a question of law arising which requires to be so referred. 4. There can be no dispute that the controversy spells out a question of law arising for determination. The question of law is whether exclusion of machine, machinery, plant etc. would amount to exclusion of part of machine, part of machinery, part of plant etc. The only answer of the respondent is that this question of law has been finally decided by th....
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....Punjab Alkalies and Chemicals Ltd. (Respondent in the appeal) are engaged in the manufacture of caustic soda. Caustic soda is manufactured by electrolysis of Sodium Chloride Brine. Electrolysis is done by passing electricity through Electrodes. Titanium metal anode coated with a very thin film of special metal is used as anode and continuous film of mercury flowing over steel bottoms is used as Cathode. On the basis that Titanium anode is used as input for manufacture of caustic soda, the manufacturers were availing Modvat credit of duty paid on the Titanium anode under Part AA of Chapter V of the Central Excise Rules, 1944. A show cause notice was issued by the Department to the manufacturers requiring them to show cause why demand should ....