TaxTMI 
TaxTMI 
1992 (7) TMI 218
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....n various inputs under the modvat scheme for use in or in relation to the manufacture of the aforesaid final product. Among the inputs, in respect of which Modvat credit was claimed and taken, objection was taken in respect of certain items (discussed later) alleging that they do not form part of the final product and they are used in relation to moulds, which are equipments and hence four show cause notices covering different periods were issued within the normal period of limitation. In the common adjudication order passed by the Asstt. Collector disposing of all the four notices, it was held that these chemical inputs are not directly used in the manufacture of final product and they are used as release agents being applied in the castin....
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....ical will lead to similar types of defects in plastic moulded components. 3. Metaflux These chemicals are 'must' in keep molten metal clean & gas free for producing quality components of carburettors. These chemicals are used to remove the entrapped oxide & intermetallic compounds which float on molten metal top. Then the chemicals are spread uniformly on molten metal surface & stirred well. Thus avoiding production of defective castings. If we do not use these fluxes in pressure die casting then the components cast will have oxides entrapped in the structure of the casting. The castings are losing machinability and they will have hard spot in the castings; and the castings get rejected. 4. Degasser This is solid chemical ....
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....agent, they cannot be said to be part of the equipment or used for functioning of the equipment. These chemicals are to be applied to the die-cast for obtaining a perfect casting for the manufacture of carburettors. The chemical at S. No. 3 is spread on molten metal to avert formation of defective casting. The chemical at Sr. No. 4 is also used directly in molten aluminium alloy, before casting for picking up dissolved gases. Chemical at Sr. No. 5 is used in crucible so that molten metal is free from iron pick up. Chemical at S. No. 6 is used to degrease the carburettors in hot condition. He pleaded that all these chemicals are used directly on the manufacture of final product and they are in the nature of consumable chemicals and used for ....
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....ge of the disputed inputs as presented by the ld. consultant through the affidavit is not disputed by the ld. JDR on factual correctness. Hence, we go by the same, taking note of the objection of JDR only in regard to Aluminite. 7. First we propose to take up the items at S. Nos. 1, 2 & 5 which are as follows : 1. Dycote-635 Dycote - 48 Dresswell -101(5) 2. Aerosol 5. Aluminite Items at 1 & 2 are reported to be chemicals applied to cast moulds for releasing the casting and it acts as a film barrier between die surface and molten metal preventing physical contact between them for facilitating easy ejection of the casting without damage. Hence, these cannot be said to be items used either for manufacture or making of....