9911796707
TMI Blog1997 (1) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... wledged by the Department on 5-5-1989 and as such, the Modvat was available from the date of acknowledgment of the declaration. Secondly, the Department had denied the Modvat credit on the ground that the Liquid Oxygen was not an eligible input in terms of Rule 57A of the Central Excise Rules, 1944. 2. Appearing on behalf of the appellant company, Shri K.K. Banerjee, learned Advocate submitted that earlier they had filed a declaration in 1986. However, since that declaration was not in proper form, another declaration was filed on 25-3-1988, which was, however, acknowledged by the Department on 5-5-1989. He submitted that the finding of the adjudicating authority that the letter of 25-3-1988 was not received in the office of the Assistant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ltimately reacts with PbO (Lead oxide) to form molten metal Pb-metal : PbO + Co = Pb + Co2. Therefore oxygen is a must for furnace operation for latter and faster reduction of PbO (Lead Oxide) in blast furnace oxygen is thus not used as fuel but energy in enriching/generating high temperature and chemical reaction as well as melting down deposition of micro-constituents in the nature of metalitic impurities clogging the flow of molten-metal. Liquid oxygen is consumable item, an essential ingredient used in manufacturing process, has nexus with the production of final product Refined lead. Liquid oxygen/oxygen gas directly participates in the integrated process of manufacture is an `Input used in or in relation to the manufacture of Refined ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit in respect of Liquid Oxygen had been allowed to them by the Assistant Commissioner concerned vide his Order dated 3-9-1986 (copy placed on record). The said Order had not been challenged by the Department and their Unit at Vishakapatnam had been enjoying the benefit of Modvat credit in respect of the Liquid Oxygen right from 1986. In the circumstances, he submitted that the appeal in question be allowed by extending the benefit of Modvat credit to them in respect of Liquid Oxygen. 7. Countering the arguments of the appellants, Shri B.B. Sarkar, learned Junior Departmental Representative for the respondent Commissioner, reiterated the reasonings adopted by the adjudicating authority and submitted that as the Liquid Oxygen was not used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the reaction given therein, the use of Liquid Oxygen, which is consumed in the process, has a nexus with the production of final product, Refined Lead and it cannot, therefore, be said that the same does not directly participate in the integrated process of manufacture. I do not intend to discuss all the Judgments on the point as the issue is no more `res integra and I feel that there is no requirement that the inputs used should be present physically in the final product in order to qualify for the Modvat benefit and it is sufficient as long as the same are `used in or in relation to the manufacture of the final product and are not specifically excluded from the scope of the machinery, appliances etc. inasmuch as the Liquid Oxygen is not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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