1997 (1) TMI 250

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....hat the declaration filed by the appellants vide their letter dated 25-3-1988 was acknowledged by the Department on 5-5-1989 and as such, the Modvat was available from the date of acknowledgment of the declaration. Secondly, the Department had denied the Modvat credit on the ground that the Liquid Oxygen was not an eligible input in terms of Rule 57A of the Central Excise Rules, 1944. 2. Appearing on behalf of the appellant company, Shri K.K. Banerjee, learned Advocate submitted that earlier they had filed a declaration in 1986. However, since that declaration was not in proper form, another declaration was filed on 25-3-1988, which was, however, acknowledged by the Department on 5-5-1989. He submitted that the finding of the adjudi....

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....The oxygen in blast furnace is used to make it react with coke for production of Co (Carbon mono oxide) which ultimately reacts with PbO (Lead oxide) to form molten metal Pb-metal : PbO + Co = Pb + Co2. Therefore oxygen is a must for furnace operation for latter and faster reduction of PbO (Lead Oxide) in blast furnace oxygen is thus not used as fuel but energy in enriching/generating high temperature and chemical reaction as well as melting down deposition of micro-constituents in the nature of metalitic impurities clogging the flow of molten-metal. Liquid oxygen is consumable item, an essential ingredient used in manufacturing process, has nexus with the production of final product Refined lead. Liquid oxygen/oxygen gas directly participa....

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....ECR 67 respectively. 6. He also submitted that in respect of the same appellant factory at Vishakapatnam, Modvat credit in respect of Liquid Oxygen had been allowed to them by the Assistant Commissioner concerned vide his Order dated 3-9-1986 (copy placed on record). The said Order had not been challenged by the Department and their Unit at Vishakapatnam had been enjoying the benefit of Modvat credit in respect of the Liquid Oxygen right from 1986. In the circumstances, he submitted that the appeal in question be allowed by extending the benefit of Modvat credit to them in respect of Liquid Oxygen. 7. Countering the arguments of the appellants, Shri B.B. Sarkar, learned Junior Departmental Representative for the respondent C....