V.T. Raghavachari, Member (J)

1. M/s. The Sirsilk Limited are manufacturers of Acetate Rayon Yarn, Acetate Staple Fibre and Acetate Tow. In respect of certain inputs with reference to such manufacture they had claimed benefit of notification No. 201/1979 relating to such of the inputs as had been purchased by them from the open market. The Assistant Collector of Central Excise under his order dated 14.8.1981 held that they were not entitled to such benefit since these inputs had been utilised only in the manufacture of other excisable goods which themselves were exempted from duty by reason of Notification No. 118/1975, such intermediate products being consumed captively in the course of further manufacture resulting in the final manufacture of the products mentioned earlier. He had also further held that as such inputs purchased from the market were mixed up with similar inputs manufactured in the factory itself for captive consumption and they were all used together in further manufacture it was not possible to correlate the inputs (purchased from the market) and the final product. On appeal the Appellate Collector of Central Excise, Madras under his order dated 30.11.1981 se