1997 (11) TMI 269 - AT - Central Excise

Summary

Issues:
Admissibility of Modvat credit on ANTI-SCALAN used for prevention of scaling in water circulation tubes.

Detailed Analysis:

Issue 1: Admissibility of Modvat credit on ANTI-SCALAN
The appeal addressed the admissibility of Modvat credit on ANTI-SCALAN used for preventing scaling in water circulation tubes. The ld. Collector (Appeals) allowed the credit based on previous judgments. The Appellant argued that ANTI-SCALAN was used for maintenance, not manufacturing, citing a Tribunal decision on a similar issue. The Respondent contended that ANTI-SCALAN was essential for preventing scaling in tubes and pipes, similar to other chemicals eligible for Modvat credit according to Tribunal decisions.

Issue 2: Use of ANTI-SCALAN in relation to manufacturing
The Appellant argued that ANTI-SCALAN was not used in manufacturing sugar or molasses but for maintenance, referencing a Tribunal case. However, the Respondent asserted that ANTI-SCALAN was crucial for keeping tubes and pipes scale-free, citing Tribunal decisions on similar items. The Tribunal found that ANTI-SCALAN was used in the manufacturing process of sugar and molasses, making it eligible for Modvat credit under Rule 57A of the Central Excise Rules, 1944.

Conclusion:
After considering the arguments and evidence presented, the Tribunal upheld the decision allowing Modvat credit on ANTI-SCALAN. The judgment emphasized the essential role of ANTI-SCALAN in the manufacturing process of sugar and molasses, qualifying it as an input eligible for Modvat credit. Therefore, the appeal was rejected, affirming the admissibility of Modvat credit on ANTI-SCALAN for preventing scaling in water circulation tubes.