2000 (5) TMI 84

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....hallenge the Order-in-Appeal No. 36-CE/KNP-I/99, dated 26-3-1999. By the said order the assessee's appeal claiming Modvat credit on Steel Shots used in the manufacture of finished product was allowed. According to the Department credit on Steel Shots used in the manufacture of C.I. Castings is only admissible under Rule 57A of the Rules and not under Rule 57Q as observed by the Commissioner. Since....

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....n or in relation to the completion of manufactured products, but is otherwise". 3. In reply to the show cause notice the assessee filed detailed objection. Their contention on the use of Steel Shots as could be seen from the order passed by the adjudicating authority is as follows : "Steel Shots are small/tiny balls used in "shots blasting machine". This machine removes Mud, Sand and other f....

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....odvat credit are available on eligible capital goods, irrespective of the fact whether they are capital goods or not, is correct. Accordingly, he held that Steel Shots are eligible capital goods under Rule 57Q and are entitled to Modvat credit. 4. Learned Departmental Representative reiterated the grounds mentioned in the appeal. 5. Nowhere in the Memo. of Appeal it is contended that the ste....