1997 (10) TMI 172

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.... for the Respondent. [Order]. - The Revenue filed this appeal against the order-in-appeal passed by the Commissioner of Central Excise (Appeals). In the impugned order the benefit of Modvat credit in respect of clean flo chemical used for removing deposits from the cooling coil of the air conditioning system, is allowed to the appellant. 2. Shri Nair, JDR appearing on behalf of the a....

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....t the appeal be allowed. 3. Ld. Counsel appearing on behalf of the respondents submits that the Clean Flo is used for cleaning and removing deposits from the cooling coil in the air conditioning system which control the temperature for maintaining the process condition. Therefore the Clean Flo was an essential input for the process as well as the finished goods. He submits that the Collect....

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....g the deposit from the cooling coil of the air conditioning system. The Revenue relied upon the decision of the Tribunal in the case of Kanoria Sugar and Co. Ltd. v. Collector of Central Excise reported in 1996 (87) E.L.T. 522. In this case the Tribunal held that the lubricants and grease used merely for better operation of machinery and hence these are not entitled for the Modvat credit in terms ....

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....sp;In the case of Cans and Closures v. Collector of Central Excise (supra) the Tribunal relied upon the decision of the Addisons Company Ltd. v. CCE (supra). The Tribunal held that as long as the goods used in or in relation to the manufacture of final product and are not specifically excluded from the scope of exclusion clause of Rule 57A or excluded by Notification No. 157, dated 1-3-1986, the M....