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TMI Blog1990 (11) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... S.K. Sharma, JDR, for the Respondent. [Order per : S.K. Bhatnagar, Member (J)]. This is a stay application filed with reference to the order of the learned Collector (Appeals), Central Excise, New Delhi. 2. The learned counsel stated that in this case the learned Assistant Collector had not allowed availing of Modvat credit on mercury and graphite used in the manufacture of caustic soda ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nished product that is caustic soda. Similarly the graphite electrodes chemically react with the brine solution and the carbon contained therein also gets retained in the end product that is caustic soda in the form of graphite carbonates. 4. In view of the above position they were required to be treated as inputs in terms of Rule 57(a). Hence they were eligible for Modvat credit in question. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstant case admittedly mercury and graphite are used as cathode and anode and are then essential parts of the electrolytic cell. Therefore they are in the nature of parts of the equipment or machinery used for manufacture of caustic soda. Hence the mischief of the exclusion clause is attracted and the appellants were not eligible for the Modvat credit claimed. 8. It was also his contention that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uts or parts of equipment is the main issue involved and the merits of the case could be more appropriately taken up during the hearing of the main appeal. We also note that while both the sides have made some submissions on the technical aspects, the commercial aspects have not been touched upon. At the same time we take note of the Supreme Court s judgment in the case of Ballarpur Industries Lim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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