2000 (5) TMI 84

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..... ssee's appeal claiming Modvat credit on Steel Shots used in the manufacture of finished product was allowed. According to the Department credit on Steel Shots used in the manufacture of C.I. Castings is only admissible under Rule 57A of the Rules and not under Rule 57Q as observed by the Commissioner. Since Modvat credit has now been allowed under Rule 57Q, the Revenue wants the order of the appel .....

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..... to the show cause notice the assessee filed detailed objection. Their contention on the use of Steel Shots as could be seen from the order passed by the adjudicating authority is as follows : "Steel Shots are small/tiny balls used in "shots blasting machine". This machine removes Mud, Sand and other foreign particles from the moulded items. "Steel Shots" are thrown on moulded items inside the ma .....

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..... apital goods or not, is correct. Accordingly, he held that Steel Shots are eligible capital goods under Rule 57Q and are entitled to Modvat credit. 4. Learned Departmental Representative reiterated the grounds mentioned in the appeal. 5. Nowhere in the Memo. of Appeal it is contended that the steel shots were not used in or in relation to the manufacture of the final product. The only content .....

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