1996 (8) TMI 273

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....ri Jangir Singh, JDR, for the Respondents. [Order per : K.S. Venkataramani, Member (T)]. -  This appeal along with Appeal No. 2894/93-NB of the same appellants, which is also taken up today, alongwith this appeal, involves the same issue of Modvat credit. The lower authorities had denied Modvat credit on input Dowtherm Dephyl used in the manufacture of nylon polyester filament yarn prod....

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....instead of denying it on the ground that it is in the nature of a device. The ld. Counsel cited the case law in the case of Gujarat Alkalies and Chemicals v. C.C.E. reported in 1996 (81) E.L.T. 117 wherein the Tribunal held that gases used in the refrigeration plant for maintaining temperature is eligible inputs. The Tribunal's decisions have laid down that inputs need not be present in final prod....

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.... "It was further submitted that Nylon and Polyester Filament Yarn are obtained by a process of melt spinning in which the raw material i.e. capralactum for Nylon Yarn and DMT for Polyester Yarn, are in solid state and have to be melted before Polymerisation. The Polymer in both the cases is cast in the form of chips which are again melted and the melt is extruded through spinnerettes to obtain fil....

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....turing process of yarn, it is clear that this is an input which is used in relation to the manufacture of the nylon and polyester yarn. This would be sufficient reason and would be in consonance with the term under Rule 57A for giving it the status of eligible input for Modvat credit under that rule. The inputs considered by the Tribunal in the case law cited before us by the ld. Counsel, were als....