1996 (11) TMI 176

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..... .P. Gulati, Vice President]. The issue in the appeal relates to grant of Modvat credit in respect of the following : - (i) Silica gel (ii) Coating oil (iii) Platinum rhodium catalyst 2. The learned Counsel has pleaded that the appellants manufactured nitric acid and ammonium nitrate. For the manufacture of nitric acid they extract nitrous oxide from air. The air is run through the sy .....

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..... facturing stream has to be dried. The air in the present case is a raw material and nitrous oxide is extracted therefrom. In view of what has been explained, we hold that the Modvat credit would be available in respect of this item. 5. It was pleaded that the coating oil does not participate as such in the manufacture of ammonium nitrate but the same is used for the coating of ammonium nitrate p .....

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