1997 (2) TMI 216

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....nt stating that steel shots and the gases cannot be regarded as inputs within the meaning of Rule 57A of the Central Excise Rules, 1944 and, therefore, credit cannot be taken of the duty paid on such goods and proposing to demand the amount of credit availed of. Notice was resisted by the respondent. However, the Assistant Collector overruling the contentions of the respondent, confirmed the demand. This order was set aside by the Collector (Appeals) on the ground that the steel shots and the gases are "inputs" covered by Rule 57A of the Rules. The Collector of Central Excise, being aggrieved, has filed this appeal. 2. The dispute as at present, as explained by Shri T.R. Malik, SDR, relates to the entitlement to Modvat credit in res....

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....a) Ltd. v. Commissioner of Central Excise, Pune respectively. In the first case relating to Rathi Alloys and Steel Ltd. page 156 Argon Gas was being used for homogenising the temperature of liquid steel in the ladle used for carrying molten metal from furnace to the melt in the manufacture of steel and it was held that it is an input in respect of which Modvat credit under Rule 57A of the Rules would be available. In the case of Widia (India) Ltd. at page 373, Argon Gas was being used for improving the properties of Carbide Components within the HIP furnace and by creating inert atmosphere inside HIP. After Hipping, the contaminated gas would be thrown out. It was held that Argon Gas is used in relation to the manufacture of the final produ....

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....e of which the final product will not come into being and, therefore, sand mould is used in the manufacture of final product, namely, steel castings and consequently chemicals or Resin are used in the sand mixture for the purpose of producing sand mould and are used in relation to manufacture of final product, namely, steel castings. The Larger Bench relied on the decision of the Supreme Court in J.K. Cotton Spinning and Weaving Mills Co. Ltd. v. S.T.O., 1965 (16) STC 563, Indian Copper Corporation v. Commissioner of Commercial Taxes, 1965 (16) STC 259 and Collector v. Eastend Paper Industries, 1989 (43) E.L.T. 201 (S.C.). In the first case, it was held that the "manufacture" of goods should normally encompass the entire process carried on ....