1993 (10) TMI 160

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..... the Respondents. [Order per : V.P. Gulati, Member (T)]. - This appeal is filed by the Revenue against the findings of the Collector (Appeals) holding that MODVAT Credit is available under Rule 57A in respect of Dissolved Acetylene and Oxygen used for purification of the metal and also for easy melting. The learned lower appellate authority has also allowed the benefit of MODVAT Credit in respe .....

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..... efore the Respondents are not eligible to avail the benefit of MODVAT Credit in respect of these inputs. 3. Shri Balasubramanian, the learned Counsel for the Respondents pleaded that so far as Acetylene and Oxygen gases are concerned these are used in relation to the manufacture of the final product by the Respondents in their factory for cutting of the scrap which is a necessary operation f .....

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..... s input ready for use in the manufacturing process. Therefore, the cutting process has to be considered to have been carried out in relation to the manufacture of the final product. In this view of the matter, we hold that Oxygen and Acetylene gases are to be held to be covered by the provisions of Rule 57A and MODVAT Credit has to be allowed in respect of the duty paid on the same. 5. In re .....

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