CHEMPLAST SANMAR LTD. Vs. CCE

JUDGEMENT

(1.) THE stay application and appeal lies in a short compass.

(2.) Hence they are taken up together for disposal as per law. The question involved in this appeal as to whether the appellant can take modvat credit in respect of the input viz. Hydro Caloric Acid used in the effluent treatment plant. The authorities below have held that for treatment of effluents, the benefit of modvat credit cannot be allowed as appellants had used for effluent treatment and not for water treatment. He has also held that the other input Aquacham is not used for affluent treatment but used for water treatment for the manufacture of final product and for this, he has granted the benefit of modvat credit on which revenue has not come up yet on appeal. Ld. Counsel submits that the use of HCL for effluent treatment plant is to be extended to the modvat credit. He submits that HCL is used for effluent plant and same is eligible for the benefit of modvat credit. He pointed out and furnished a copy of Bangalore Bench order rendered in the case of Fertilizers & Chemicals Travancore Ltd. v. CCE, Cochin,, 2002 (148) ELT 896 (Tri -Bang.) :, 2002 (103) ECR 86 (T), wherein for this very item the benefit has extended in the light of Apex court judgment rendered in Indian Farmers & Fertiliser Co. Op. Ltd. v. Commr., 1996 (86) ELT 177 (SC) :, 1996 (66) ECR 1 (SC). He submits that as the issue is covered, he seeks for allowing the appeal.