1985 (4) TMI 300

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....., dated 4-6-79 amended by Notification No. 105/82-C.E., dated 28-2-1982. The Appellate Collector of Central Excise, Calcutta disagreed with the Asstt. Collector and in his Order No. 19/OR/84, dated 25-10-84 directed that the appellants should avail set-off benefit in respect of lime, salt cake, sulphamic acid and alum under the Notification No. 201/79-C.E., dated 4-6-79 provided these inputs and the intermediate products that emerged out of them were not removed outside the factory but fully consumed internally in paper making. We are in agreement with the Appellate Collector and do not think his order needs to be set aside or interfered with. 2. Nor dowe agree with the appeal before us that the word "inputs" introduced by Notification No....

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....stt. Collector, the salt cake is not a material or component part for paper. He is again totally mistaken. As long as the salt cake is used in the manner indicated, that is, the recovery of caustic soda (from spent liquor) which is used in the bleaching, treating the pulp, it (salt cake) is very much a raw material and an input in the manufacture of the paper that comes out at the end. 6. Sulphamic acid is used to reduce the degradation of pulp fibres and therefore to improve the quality of the fibre and of the paper. Since the term raw material is held by the Asstt. Collector to mean basic ingredients, the acid was not a raw material. If chemicals used to improve fibre and paper quality are not ingredients/raw materials then we are at a l....