TaxTMI 
TaxTMI 
2010 (8) TMI 340
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....to be allowed. 2.The question of law which arises for consideration in the above Appeal is gainfully reproduced herein under :- "Whether the process of purification and filtration done by the assessee bring out any chemical change in their products Hydrochloric Acid and Sulphuric Acid, and same amount to manufacture?" 3. The issue in the above Petition is as regards the eligibility of the Respondent herein for MODVAT credit on inputs used by them for the manufacture of Hydrochloric Acid and Sulphuric Acid. The Respondent herein is engaged in the manufacture of excisable goods falling under Chapter 28 of Central Excise Tariff Act, 1985 and is availing the benefit of Modvat credit under Rule 57A. The Respondent filed a declarati....
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....nd vide his order in original dated 20th June 1996 disallowed Modvat credit of Rs. 1,10,589/- availed by the Respondent on the inputs i.e. Hydrochloric acid and Sulphuric acid and thereby confirmed the demand to that effect under Rule 57-I of the Central Excise Rules 1944 and imposed penalty of Rs. 20,000/- under the provisions of Rule 173Q of the said Rules. 5. Aggrieved by the said order in original dated 20th June 1996, the Respondent herein filed an Appeal before the Commissioner of Central Excise (Appeals). The Commissioner upheld the said order in original dated 20th June 1996 and rejected the Appeal of the Respondent herein. Being aggrieved by the said order of the Commissioner, the Respondent herein filed further Appeal b....
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....d (ii) which is specified in relation to any goods in the Section or Chapter notes of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) as amounting to manufacture, and the word "manufacture" shall be construed accordingly and shall include not only a person who employs hired labour in the production or manufacture of excisable goods, but also any person who engages in their production or manufacture on his own account" The learned counsel for the Respondent submitted that even though the ultimate product of the Respondent remains the same i.e. Hydrocholic acid and Sulphuric acid, there is manufacturing process involved as there is purification and filtration to make the product marketable in the internati....
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.... Jaipur (AIR 1987 S.C. 1166), where it was held that it was not that a place where goods were sold was only a shop. A place where services were sold on retail basis was also a shop. The facts of that case were entirely different from these in this case. But the ratio of that decision is apposite to the issue in dispute here. There this Court reiterated that it was not that a place where goods were sold was only a shop. But a place where services were sold on retail basis was also a shop. The place of business of a firm carrying on the business of playing music on occasion, such as, marriage and other social functions which made available on payment of the stipulated price the services of the members of the group of musicians employed by it ....