1990 (12) TMI 243

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....e electrolytical process during the course of manufacture of caustic soda. The learned Collector (Appeals) has held as under: "I find that in view of the Government of India's order cited by the appellants, which are issued particularly for MODVAT Credit, the analogy of CEGAT's order cited by the Assistant Collector in matter other than MODVAT will not be applicable. As such, in the absence of any position finding than mercury is machinery and in view of the facts that electrodes are considered for availment of MODVAT Credit by the Government of India the appellants' ground and acceptable and are accepted." 2. The Revenue is in appeal against this finding of the Collector (Appeals). The Revenue in the grounds of appeal referred to the....

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....facture of unwrought zinc are eligible for MODVAT Credit. He has pleaded that this decision of the Tribunal has been followed in another case reported in 1990 (50) E.L.T. 172 (Tri.) = 1990 (30) ECR 458. He has pleaded that the East Regional Bench has also allowed MODVAT Credit in respect of electrodes used in similar process in the case reported in 1900 (49) E.L.T. 531. 4. We observe that the mercury used by the Respondents as cathodes in the electrolytical process gets consumed and there is no rebuttal of this plea from the other side. This Bench of the Tribunal in the case reported in 1990 (48) E.L.T. 283 (Tri.) = 1990 (28) ECR 421 held as under : "The short point that falls for consideration is whether Aluminium sheets can be taken....

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....same has to be taken to be in relation to the manufacture of the specified final product under Rule 57A as in the case of Titanium Metal Anodes in respect of which MODVAT Credit has been held to be admissible. It is observed that the term 'inputs' used under Rule 57A has a wider import. Aluminium sheets used being no equipment as such and since these participate in the manufacturing process, have to be taken to be covered by the provisions of Rule 57A for grant of MODVAT Credit. The Hon'ble Supreme Court in the case of M/s. J.K. Cotton Mills Co. Ltd. v. Sales Tax Officer reported in 1965 SC 1310 (VC 213) examined the scope of the term goods used in the manufacture in the context of Rule 18 framed in the context of Section 13 of the Central ....