1995 (7) TMI 150

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.... 2. The facts in brief are that the respondents are engaged in the manufacture of steel ingots and were availing modvat credit in terms of Notification No. 177/86, dated 1-3-1986 as amended; that during the period from April, 1986 to October, 1987, they took credit of duty paid on oxygen and acetylene gas, ingots, moulds, ceramic and refractory and other inputs under Rule 57A of the Central Excise Rules, 1944, The Asstt. Collector, Central Excise confirmed the demand on account of modvat credit taken on oxygen, acetylene gas, ingots, moulds, ceramics and refractory. The Collector (Appeals) held that the credit was not admissible on ingot moulds, ceramics and refractory. The Collector (Appeals) however allowed the credit on oxygen and a....

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.... Collector of Central Excise, Chandigarh". The Collector (Appeals) also held "in the light of the above discussion, I hold that ingot moulds, ceramics and refractory do not qualify for inputs and modvat credit is not admissible on these items; whereas it is admissible on oxygen and acetylene gas. The orders of the Asstt. Collector are modified accordingly". The ld. JDR submitted that the Assistant Collector in his adjudication order had clearly brought out that oxygen and acetylene gas were used for carbonising of moulds to get good finish for steel ingots; that since these gases were used for moulds which itself are an apparatus and equipment used for making steel ingots. There could not be any reason to infer that these gases were being i....