COMMR. OF C. EX. Vs. SCIENTIFIC COMPOUNDS AND

JUDGEMENT

(1.) REVENUE being aggrieved with the order passed by the Commissioner (Appeals) has filed this present appeal.

(2.) THE appellate authority has extended the benefit under Notification No. 227/77 -C.E. which exempts the final product if no process is ordinarily carried on with the aid of power in or in relation to the manufacture of the final product. As per facts on records, the appellants are admittedly manufacturing scouring powder without use of power but the Revenue's contention is that inasmuch as power has been used in the manufacture of Acid Slurry which in turn used in the manufacture of Scouring powder, exemption cannot be made available to the Respondents. On the above grounds the original adjudicating authority held against the appellants by denying the benefit of the notification. On appeal, the Commissioner (Appeals) reversed the order of the original adjudicating authority.

(3.) IT has been brought to our notice that there are two separate factories and Acid slurry is being manufactured in one of the factories and it has been cleared on payment of duty under the cover of Gate Pass to the other factory where Scouring powder was being manufactured. Acid Slurry is an excisable product classifiable under Heading 3402.90 and as such is an excisable item. The same has to be treated as one of the raw materials used in the manufacture of the 16/156/7 final product. As such, the submissions of the ld. Advocate for the Respondents that it is a well settled law that use of power in the manufacturing of the raw material cannot be considered as a use of power in the manufacture of the final product for the above proposition is well appreciated. He relies on the following decisions of the Tribunal, -