Full Judgment Text
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CASE NO.:
Appeal (civil) 2467 of 1999
PETITIONER:
Collector of Central Excise, Jaipur
RESPONDENT:
M/s Hindustan Zinc Ltd.,
DATE OF JUDGMENT: 24/03/2004
BENCH:
S. N. Variava & H. K. Sema
JUDGMENT:
J U D G M E N T
(with C.A. No. 9276 of 2003)
S. N. VARIAVA, J.
The question which arises in these two Appeals is whether the
Respondents are entitled to the benefit of Notification No. 217/86-CE
dated 2nd April, 1986. The Tribunal has, in the impugned Orders
without giving any ascertainable reasons, held that the lead input
sheet would be eligible to the benefit of the Notification, but the
headers would not be eligible to the benefit of the Notification.
Notification No. 217/86-CE of 1986 only exempts inputs. It also
clarifies that machine, machinery, plant equipment, apparatus, tools or
appliances used for manufacturing and processing of any goods or
bringing about any change in any substance or in relation to a final
product shall be excluded from the term "inputs". What is questioned
before us is the finding of the Tribunal that the lead anode sheets are
eligible to the benefit of the Notification.
It was fairly admitted that sheets would be an input and that if it
is clarified that the Notification only applies to sheets and not to the
final product manufactured after headers are fixed to the sheets, the
Deptt. will be satisfied. To this there is no objection.
In our view it is clear that headers whether attached to lead or
aluminium sheets are not inputs. As they are not inputs the benefit of
the Notification would not be available to headers. However, the
sheets are inputs and they would be entitled to the benefit of the
Notification.
These Appeals stand disposed of accordingly. There will be no
order as to costs.