2013 (3) TMI 320

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....and sulphuric acid which are subject to excise duty. During the manufacture of those products, toxic effluent 'Jarosite' is generated. The appellant as per Pollution Under Control norm treat the aforesaid "Jarosite" with cement and lime before discharging the said treated effluent as secured land fill. During the relevant period, the appellant availed Cenvat credit on the cement used for treating the effluent 'Jarosite' before dumping it in the land fill. The Department was of the view that since exclusive use of cement was to treat the effluent and that it was not used in connection with the manufacture of final product, the appellant was not entitled to Cenvat credit. Accordingly, show cause notice proposing to disallow Cenvat credit avai....

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....paratus used for treatment of effluent in a plant manufacturing a particular end-product is a part and parcel of the manufacturing process of end-product. In view of the above, it is contended that the appellant has a strong prima facie case to justify the waiver of condition of pre-deposit of duty demand, interest and penalty. 4. Shri I. Baig, ld. AR for Revenue has strongly opposed the stay application. He has argued in support of the impugned order and submitted that undisputedly, the cement regarding which Cenvat credit has been availed by the appellant was used only for treating the efluent generated in the manufacturing process which has no direct or indirect connection in the manufacture of final product of the appellant comp....

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.... The view of the Collector, insofar as the effluent treatment plant was concerned, was upheld. 8. For our conclusion we draw support from the judgment of this Court in Collector of Central Excise, Calcutta-II v. Eastend Paper Industries Ltd. - 1989 (43) E.L.T. 201 = 1989 (4) SCC 244, where it was held, "Where any particular process...............is so integrally connected with the ultimate production of goods that, but for that process, manufacture or processing of goods would be commercially inexpedient, articles required in that process, would fall within the expression in the manufacture of goods". This was a reiteration of the view expressed in M/s. J.K. Cotton Spinning & Weaving Mills Co. Ltd. v. Sales Tax Officer, Kanpur and A....