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TMI Blog1997 (2) TMI 216X X X X Extracts X X X X X X X X Extracts X X X X ..... meaning of Rule 57A of the Central Excise Rules, 1944 and, therefore, credit cannot be taken of the duty paid on such goods and proposing to demand the amount of credit availed of. Notice was resisted by the respondent. However, the Assistant Collector overruling the contentions of the respondent, confirmed the demand. This order was set aside by the Collector (Appeals) on the ground that the steel shots and the gases are inputs covered by Rule 57A of the Rules. The Collector of Central Excise, being aggrieved, has filed this appeal. 2. The dispute as at present, as explained by Shri T.R. Malik, SDR, relates to the entitlement to Modvat credit in respect of duty paid on Argon Gas. 3. In Kopran Ltd. v. Collector of Central Excise, 1993 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Steel Ltd. page 156 Argon Gas was being used for homogenising the temperature of liquid steel in the ladle used for carrying molten metal from furnace to the melt in the manufacture of steel and it was held that it is an input in respect of which Modvat credit under Rule 57A of the Rules would be available. In the case of Widia (India) Ltd. at page 373, Argon Gas was being used for improving the properties of Carbide Components within the HIP furnace and by creating inert atmosphere inside HIP. After Hipping, the contaminated gas would be thrown out. It was held that Argon Gas is used in relation to the manufacture of the final products, namely, tools and tool tips and Modvat credit would be available. In the third decision relation to A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inal product, namely, steel castings and consequently chemicals or Resin are used in the sand mixture for the purpose of producing sand mould and are used in relation to manufacture of final product, namely, steel castings. The Larger Bench relied on the decision of the Supreme Court in J.K. Cotton Spinning and Weaving Mills Co. Ltd. v. S.T.O., 1965 (16) STC 563, Indian Copper Corporation v. Commissioner of Commercial Taxes, 1965 (16) STC 259 and Collector v. Eastend Paper Industries, 1989 (43) E.L.T. 201 (S.C.). In the first case, it was held that the manufacture of goods should normally encompass the entire process carried on by the dealer of converting raw materials into finished goods and where any particular process is so integrally ..... X X X X Extracts X X X X X X X X Extracts X X X X
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