HINDUSTAN LIVER LTD. Vs. CCE AND C

JUDGEMENT

(1.) The question for consideration is the eligibility to modvat credit by the appellant of the duty paid on organic surface active agents which it received and utilised by it in the cleaning of machinery that it employed in the process of manufacture of frozen desserts. In the order impugned in the appeal, the Commissioner (Appeals) has confirmed the denial of credit by the Asst. Commissioner on the ground that these chemicals were not used in relation to the manufacture of the final product.

(2.) The appellant is absent and unrepresented despite notice. The contention in the appeal is that without the use of the surface active agents it would not have been possible for the appellant to keep the machinery in its factory free of microbes. It is necessary that the edible final product which is manufactured by using this machinery conform to the standard in the Prevention of Food Adulteration Act. The decisions of the Tribunal in Pure Drinks Industries Ltd. v. CCE , Black Diamonds Beverages Ltd. v. CCE and J.K. Synthetics Ltd. are relied upon.

(3.) The departmental representative contends that the use of these chemicals is too remote from the manufacture of the final product in order to be able to say that they are used in the relation to the manufacture. He relies upon the decision of the Tribunal in Orient Paper Mills v. CCE .