1993 (9) TMI 206

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..... ial of modvat credit in respect of carbon-di-oxide and chemicals used as degreasing agent or for cleaning. The learned lower appellate authority by holding that demand of duty for the period not covered by the show cause notice was not legally tenable, remanded the matter to the original authority for re-determination of the modvat credit to be expunged in respect of the above items. The Revenue is in appeal against this decision of the learned lower appellate authority, while M/s. Wheels India Ltd. are in appeal against the denial of modvat credit in respect of chemicals used for cleaning and degreasing as also carbon-di-oxide. 2. It was urged by both the sides that in case the appeal of M/s. Wheels India Ltd. is allowed the Revenue s ap .....

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..... asked to explain as to how the carbon-di-oxide is used and furnish any technical write-up in this regard and he has produced a copy of the pamphlet titled CO2 Shielded Consumable Electrode Arc Welding by A.A. Smith, B.Sc., A.I.M. and published by British Welding Research Association, Abington Hall, Abington, Cambridge, to establish the technical requirements for using carbon-di-oxide. 4. The learned SDR for the Department reiterated the reasoning of the learned lower appellate authority and pleaded the carbon-di-oxide does not in any way form the process material and the welding could be done even without the presence of the carbon-di-oxide. He pleaded, therefore, the manner in which the carbon-di-oxide is used will not entitle it as an .....

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..... the benefit of modvat credit in respect of cleaning and degreasing chemicals is not maintainable in law. As regards the use of carbon-di-oxide, we observe that the appellants have produced technical literature which brings out the technical necessity in certain specified cases where carbon-di-oxide has to be used to get the desired results in welding. The appellants are manufacturers of the wheels of the vehicles which cannot brook of any flaws in the welding as otherwise the welding may give way resulting in serious accidents. From the photocopy of the diagrammatic representation as to how carbon-di-oxide is used, which has been produced before us, we find that the use is related to the welding process which is essential to the manufacture .....

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