2009 (7) TMI 432

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....ndents. 2. For better appreciation, I reproduce the relevant Para of the impugned order of the Commissioner (Appeals):- "5. The reason for denying the credit on ceramic balls is that the same does not participate in the actual process of refining or purifying. The modvat is eligible if the inputs are used in or in relation to the manufacture. It was contended by the appellants that in the Board's Circular No. 33/33/94/CX., dated 4-5-1994, it was clarified that it is not necessary that the inputs should be physically present. The relevant portion of the said order is reproduced below:- "Modvat credit is available for all excisable goods used as inputs in or in relation to the manufacture of finished goods. It is, therefore clarified that ....

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....not necessary. Since it is used in relation to the manufacture of the final product, the inputs Ceramic Balls is eligible for Modvat credit. The decision of the Supreme Court in the case of Rajasthan State Chemical Works [1991 (55) E.L.T. 444 (S.C.)] and the ratio of the Collector of Central Excise v. Anand Electronics Ltd. - 1993 (68) E.L.T. 680 (T-SRB) support that the inputs used directly or indirectly in the production of final products is eligible for the Modvat credit. Accordingly the denial of the Modvat credit on Ceramic Balls is not maintainable." 3. The Revenue in their memo of appeal have contested the above findings of Commissioner (Appeals) on the ground that Ceramic Balls only support silica gel in the filter beds for purifyi....