Judgment:
1. In the appeal filed by the Revenue, the matter relates to the eligibility of Nickel Catalyst and Nickel Aluminium Alloy Powder falling under [Tariff Item] 68 for the benefit of Notification No.201/79 as amended when used for the manufacture of Stearic Acid also falling under [Tariff Item] 68. The Asstt. Collector, Central Excise had rejected the claim of the respondent on the ground that they were neither raw materials nor component parts of the finished excisable products and thus, were not eligible for the benefit of set-off under Notification No. 201 /79-C.E. as amended by Notification No. 105/82.
The Collector of Central Excise (Appeals), Bombay, however, observed that the inputs were not necessarily to form part of the finished product and that raw material need not find place in the final products. He set aside the order passed by the Asstt. Collector, Bombay and allowed the appeal by M/s. Bombay Oil Industries Pvt. Ltd. 2. When the matter was called, none appeared on behalf of the party. A notice of today's hearing had been issued to them on 9-9-1996. There is no response. There is no request for any adjournment. As the matter is very old, we are proceeding to deal with the matter on merits after hearing Shri M. Jayaraman, JDR.3. Under Notification No. 201 /79-C.E., dated 4-6-1979 (as amended) all excisable goods on which the duty of excise was leviable and in the manufacture of which any good falling under [Tariff Item] 68 had been used as raw materials or component parts were exempted from so much duty of excise leviable thereon as was equivalent to the duty of excise already paid on the inputs. The expression used in the Exemption Notification are raw materials or component parts. The use in the manufacture for the eligibility of set-off under this Notification has to be as the raw materials or component parts. In the present case, the Nickel Catalyst and Nickel Aluminium Alloy Powder were used to accelerate or retard the chemical reaction and they themselves are not consumed in the process of manufacture nor undergo any chemical change.
4. We find that the matter is covered by the decision of the Tribunal in the case of CCE, Chandigarh v. Kashmir Vanaspati - 1987 (31) E.L.T.218 (Tribunal) wherein it had been held after examining the definition of raw material and component parts that the Nickel Catalyst, bleaching activated earth and activated carbon used in the manufacture of vegetable product were neither raw material nor component parts of vegetable product and the same were not entitled to concession under Notification No. 201/79-C.E. Similarly, in the case of Amrit Vanaspati Co. v. CCE, Meemt -1988 (35) E.L.T. 479 (Tribunal) relying upon a number of earlier decisions of Tribunal, it was held that Nickel Catalyst, Activated Carbon and Phosphoric Acid were not raw materials or component or use in the manufacture of vegetable product and the same were not eligible for exemption under Notification No. 201/79-C.E.5. The Revenue in appeal had referred to the definition of Catalyst in the condensed chemical dictionary 9th edition by G.G. Holewayat page 171 as under :- "Any substance of which a fractional percentage notably effects the rate of chemical reaction without itself being consumed or undergoing any chemical change." It has also been pointed out that under the Modvat Rules, the scope of the inputs was wider than in the Notification No. 201/79-C.E.6. Taking all the relevant considerations into account and following the Tribunal's above decisions, we consider that the views taken by the ld. Collector of Central Excise (Appeals) was not correct. As a result, this appeal filed by the Revenue is allowed. Ordered accordingly.