2002 (1) TMI 211

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....al product. Apart from that, the appellants are also engaged in the refining of coal tar by the process of distillation and blending. As per the appellants, the said process of refining of coal tar does not change the basic character and composition of the product and even after refining, the product remains to be coal tar classifiable under Heading 2706.00 and no manufacturing activity is involved. They also referred to the Order-in-Original No. 184/CAL-II/94, dated 29-4-94 holding the coal tar to be a non-excisable item. 2. The appellants submit that no Modvatable inputs are used in the process of refining of coal tar. However, sometimes, their customers insist on good quality of coal tar and in such cases, they used some of the modvat....

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....Advocate, though pleaded before the authorities below, has not been found favoured by them and they have confirmed the demands on the hypothetical conclusion that the appellants are using the Modvatable inputs in respect of excisable as well as non-excisable goods. He submits that it is only in a small percentage of coal tar that some of the Modvatable inputs are used, for which they are maintaining the proper accounts, and which have also been cleared by them by paying the duty @8%. They have paid the total amount of duty of Rs. 17,430.00 in that respect. He submits that this fact has been taken as an admission on behalf of the appellants by the Assistant Commissioner who has confirmed the duty on that ground alone. 5. We have heard Shr....