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of <h1>Tribunal grants Modvat credit for Caustic Soda and Tungsten Coil in CRT manufacturing.</h1> <h3>TELETUBE ELECTRONICS LTD. Versus COMMISSIONER OF C. EX., MEERUT</h3> The Tribunal ruled in favor of the appellants, setting aside the order denying Modvat credit on Caustic Soda and Tungsten Coil. The decision was based on ... Modvat - credit Issues:Admissibility of Modvat credit on Caustic Soda and Tungsten Coil.Analysis:The appeal was against the order of the Collector (Appeals) regarding the denial of Modvat credit on specific items used in the manufacture of Cathode Ray Tubes. The appellants had been manufacturing these tubes for about 20 years and used items like Tungsten Coil, Hydro Chloric Acid, Hydro Floric Acid, and Caustic Soda in the manufacturing process. The A.C. initially denied Modvat credit on these items, leading to an appeal. The Collector (Appeals) modified the orders, allowing credit on some items but upholding the denial on Tungsten Coil and Caustic Soda.Regarding Caustic Soda, the Collector (Appeals) acknowledged its use in the manufacturing process but contended that it was not directly related to the final product. However, the appellants argued that the Hon'ble Tribunal had already settled the issue of Modvat credit on Caustic Soda in a previous case involving a similar company, making it eligible for credit in the present case as well.As for the Tungsten Coil, the A.C. argued that it was not used directly in the manufacture of the final product and likened its function to that of a tool. However, the appellants provided technical literature supporting the essential role of Tungsten Coil in the manufacturing process, emphasizing its consumable nature and necessity for the production of Cathode Ray Tubes. The Tribunal found the A.C.'s reasoning lacking and deemed the Tungsten Coil eligible for Modvat credit based on its crucial role in the manufacturing process.In conclusion, the Tribunal set aside the impugned order regarding the denial of Modvat credit on Caustic Soda and Tungsten Coil, ruling in favor of the appellants based on the essential roles these items played in the manufacturing process of Cathode Ray Tubes.
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