1993 (9) TMI 182

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..... ember (T)]. Stay granted and Appeal heard by consent of both sides. 2. The appeal by M/s. Chloride Industries Ltd. is against the Order-in-Appeal passed by Collector of Central Excise (Appeals) holding that Modvat Credit taken on the inputs contained in the defective separators which are component parts of their final product. Electric Storage Battery, was liable to be disallowed. He held .....

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..... reiterated the contentions raised in the Appeal and submitted that they are sending certain materials to their job workers for getting the separators made which are received back by them. During such manufacture of the separators, some waste products inevitably arise. These have been received back and are available for inspection by the Departmental Officers. Their case is covered by Rule 57D and .....

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..... when the final products emerge. In the very nature of any manufacturing operation, waste can arise at any stage including the stage of manufacture of the intermediate products. The conclusion drawn by the authorities below is devoid of merit and cannot be supported. I accordingly set aside the impugned order. The case may be disposed of by the Asstt. Collector in accordance with the provisions of .....

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