9911796707
TMI Blog1995 (7) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... are engaged in the manufacture of steel ingots and were availing modvat credit in terms of Notification No. 177/86, dated 1-3-1986 as amended; that during the period from April, 1986 to October, 1987, they took credit of duty paid on oxygen and acetylene gas, ingots, moulds, ceramic and refractory and other inputs under Rule 57A of the Central Excise Rules, 1944, The Asstt. Collector, Central Excise confirmed the demand on account of modvat credit taken on oxygen, acetylene gas, ingots, moulds, ceramics and refractory. The Collector (Appeals) held that the credit was not admissible on ingot moulds, ceramics and refractory. The Collector (Appeals) however allowed the credit on oxygen and acetylene gas. Against this order of the Collector (Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals) also held in the light of the above discussion, I hold that ingot moulds, ceramics and refractory do not qualify for inputs and modvat credit is not admissible on these items; whereas it is admissible on oxygen and acetylene gas. The orders of the Asstt. Collector are modified accordingly . The ld. JDR submitted that the Assistant Collector in his adjudication order had clearly brought out that oxygen and acetylene gas were used for carbonising of moulds to get good finish for steel ingots; that since these gases were used for moulds which itself are an apparatus and equipment used for making steel ingots. There could not be any reason to infer that these gases were being inputs in terms of Rule 57A; that these are used for maint ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat oxygen and acetylene gas were being used for carbonising of moulds and therefore, I hold that the findings of the Collector (Appeals) are wrong as they are based on presumption which is not applicable to the facts of the case before me. I find that what is being manufactured is ingot. I also find that oxygen and acetylene gas are being used for carbonising the moulds. No doubt, mould is an apparatus or equipment for keeping the moulds in proper condition and their maintenance is a different issue. Oxygen and acetylene gas is no doubt, for upkeep and maintenance of the moulds. Moulds are apparatus and equipment. The use of oxygen and acetylene gas is therefore, not as an input used in the manufacture or in relation to the manufacture of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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