1997 (12) TMI 299

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....iv Srivastava, JDR, for the Respondent. [Order]. -  Both the appeals involve a common question of law hence they are being taken up for final disposal. 2. In these appeals, the benefit of Modvat credit in respect of "Kem Water" (water treatment chemical) is denied to the appellants on the ground that Kem Water is used for demineralisation of water which is used for maintenance o....

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....ellants have installed cooling tower to cool the water. For getting the required airconditioning the appellants have to use the water cooled in cooling tower and for spraying in air-washers to maintain the humidity. 5. In the process of cooling, the water in cooling tower Kem Water (water treatment chemical) is added for the purpose of anti-corrosion and to prevent the bacterial growth and....

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....efore, prays that the appeals be allowed. 6. Shri Sanjiv Srivastava, JDR appearing on behalf of the respondent Revenue reiterated the findings of the lower authorities. 7. In this case, the benefit of Modvat credit in respect of Kem Water (water treatment chemical) was denied to the appellants. The appellants are engaged in the manufacture of Nylon Polyester Filament Yarn. The appe....

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....ooling the water in cooling tower, Kem Water (water treatment chemical) is added for the purpose of anti-corrosion to prevent the bacterial growth and algae formation. The Tribunal in the case of ICI Ltd. v. C.C.E., Bombay-III [1995 (78) E.L.T. 695 (Tribunal)] held as under : "6.5 As regards KEM Watreat, it is a chemical added to the water. Such water treatment chemicals are required for s....