1997 (11) TMI 269

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....the Respondent. [Order]. - The captioned appeal pertains to admissibility of Modvat credit on ANTI-SCALAN used for prevention of scaling in the water circulation tubes. The ld. Collector (Appeals) allowed Modvat credit on Anti-scalan following the ratio of the judgment of this Tribunal in the case of Pragati Paper Mills Pvt. Limited and also relying on the judgment of the Apex Court in the c....

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....g utilised in or in relation to the manufacture of the final product, but are being used only as corrosive inhibitors and, therefore, they will not be eligible for Modvat credit. The ld. DR submits that anti-scalans are on the same footing and that the ld. Commissioner (Appeals) has erred in allowing Modvat credit on anti-scalans. 3. Shri R. Chibber, the ld. Advocate appearing for the Resp....

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....ondents also cited and relied upon the decision of this Tribunal in the case of J.K. Synthetics Ltd. [1997 (92) E.L.T. 126] wherein the Tribunal held that Trichloroethylene used for cleaning of spinnerettes/jets through which the raw material passes, eligible for the benefit of Modvat credit under Rule 57A. The ld. Counsel submits that looking to the use of anti-scalans, it is very clear that it i....

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....ntenance of machinery, but is essentially connected with the manufacture and production of sugar and molasses. It is not just used for flushing the machines or tubes and pipes to ensure that after that they work properly for a particular time frame. Water is essential for carrying the inputs in the manufacture of sugar and molasses in the present case. This water is carried through the tubes and p....