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TMI Blog1990 (12) TMI 253X X X X Extracts X X X X X X X X Extracts X X X X ..... ent. [Order per: V.P. Gulati, Member (T)]. - This appeal is against the order of the Collector of Central Excise (Appeals), Madras. The learned Collector (Appeals) denied the benefit of MODVAT Credit in respect of Oxygen and Acetylene Gas used by the appellants in the manufacture of the specified finished product under Rule 57A. The learned Collector (Appeals) has held as under in this regard : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this regard. 4. We observe that this Bench of the Tribunal in their order No. 757/90 in Appeal No. E/59/90 [reported in 1991 (53) E.L.T. 14 (Tri.)] decided on 19-9-1990 in regard to the similar issue held as under : "This Bench of the Tribunal in the case of M/s. Steel Industries Kerala Ltd. in Appeal No. E/932/89/MAS decided on 13-8-1990 has taken the view that the inputs in question would be e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ool or an input for the tool, we find that acetylene gas cannot be used by itself in isolation for metal cutting. In the torch, both acetylene gas and oxygen gas get mixed and Oxyacetylene gas only is capable of producing a flame of high temperature. Hence, Acetylene gas by itself cannot be said to perform the function of metal cutting unless it is used through the medium of torch, where oxygen ga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be a consumable, so long as it is used in or in relation to the manufacture of the final product. In our view, acetylene gas can be construed to be an input required for producing flame of high temperature, which is used in or in relation to the manufacture of the final product. We are, therefore, of the view that MODVAT Credit is required to be extended in respect of Acetylene gas". 6. In view o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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