1996 (7) TMI 213

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....Order]. -  By the present appeal, the appellant has assailed the order of Collector (Appeals). The Collector (Appeals) in his order had held : "I have considered the matter. It is evident from the facts of the case that the use of Mafron Gas is absolutely essential for manufacture of the polyester film and yarn. It is immaterial that such input is not physically present in the final pro....

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....n this item. Against the order of Asstt. Collector, the assessee went in appeal to Collector (Appeals). The Collector (Appeals) allowed the appeal of the assessee. The Department has filed the present appeal against this order of Collector (Appeals). 3. Shri Y.R. Kilaniya, the learned DR appearing for the appellant submitted that the refrigerant gas (mafron gas) is used as a device inside ....

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....ted that mafron gas is used for chilling molten or semi-solid polyester film yarn in the course of its manufacture; that this chilling operation is essential as without the process of chilling, polyester film yarn cannot be made. The ld. Counsel cited and relied upon the judgment of this Tribunal in the case of Kaporan Ltd. supra. The ld. Counsel also referred to the instructions contained in Circ....

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.... also observe that the respondents have contended that mafron gas is essential for this process and that without the use of mafron gas, manufacture of polyester film yarn is not economically viable. The contention of the appellant is that the mafron gas is used inside the chilling plant and therefore it is a device or a part of the plant system is not supported by any fact. I also find that the Co....