BHARAT ALUMINIUM COMPANY LTD. Vs. CCE, RAIPUR

JUDGEMENT

(1.) THE appellants are manufacturers of aluminium shapes and sections (profiles). They use Caustic Soda for the purpose of cleaning the steel dies which are used for the manufacture of their final products. They took Modvat credit on Caustic Soda during 8/1989 to 9/1995 under Rule 57A of the Central Excise Rules 1944, which has been denied by the Commissioner of Central Excise by his order dated 24.8.2001 on the ground that Caustic Soda was used for cleaning the dies after completion of the manufacture of aluminium. The adjudicating authority has refused to follow the decision of this Tribunal in Wheel India Ltd. v. CCE, Madras ( : 1994 (69) ELT 71 :, 1994 (51) ECR 301 (T)) cited by the assessee. Hence the present appeal. Heard both sides. Ld. advocate Shri A.C. Jain for the appellants submits that the manufacture of aluminium shapes and sections in their plant was a continuous process, that Caustic Soda solution was used to remove the traces of aluminium sticking to the inner surface of the dies after the casting of the shapes and sections, that such use of Caustic Soda was in or in relation to manufacture of the aluminium shapes and sections and that the input -credit under Rule 57A was available to the item. He submits that the issue is squarely covered in the assessee's favour by the decision of this Tribunal in Wheels India (supra). He further relies on the decision of this Bench in U.P. State Sugar Corporation v. CCE, Allahabad ( : 2000 (122) ELT 172). He prays for allowing the appeal. Ld. JDR Shri S.C. Pushkarna has endeavoured to defend the impugned order on the strength of the findings contained therein.

(2.) CONSIDERED the submissions. It is not in dispute that Caustic Soda, made into a strong aqueous solution, was used by the appellants for cleaning the steel dies used for extruding profiles (shapes and sections) out of molten aluminium. The appellants, in their replies to the show -cause notice, pleaded that the manufacture of aluminium shapes and sections was a continuous process. This contention has been reiterated by the counsel today. It appears from the impugned order that this plea of continuity of the process of manufacture has not been accepted by the Commissioner, nor properly examined by him. The finding recorded by the Commissioner is that Caustic Soda was used for cleaning the dies after completion of the process of manufacture of aluminium. Apparently, the Commissioner has taken an instance of extrusion of aluminium shape or section out of molten aluminium in a given die as the process of manufacture, in isolation from a subsequent similar operation with the same die. Whether there is continuity between such consecutive operations involving repeated use of a given die does not appear to have been properly examined by the adjudicating authority. He has also not accepted the reliance placed by the assessee on the Tribunal's decision in Wheel India (supra). In this connection, he observes as under: - -