TMI Blog1993 (12) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... er (T)]. This appeal is against the order of the Collector of Customs Central Excise (Appeals), Bangalore. The learned lower appellate authority by the impugned order has denied the appellant the benefit of MODVAT credit in respect of Argon Gas and Freon T-DA 35X, which the appellant claimed are used in or in relation to the manufacture of their products viz., tools and tool tips. The use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. In order to dry the inserts, they are passed through Freon TDA 35-X. Freon TDA 35-X has the exclusive property of removing water and moisture from surfaces by a combination of displacement and flotation." The learned lower appellate authority in regard to the use of the two gases has entered the following finding : In respect of Argon Gas and Freon T-DA 35- X, the write up is not clear a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for improving the properties of the carbide material. He has pleaded that Argon gas is a manufacturing necessity of the appellant and in the way it is used it qualifies as an input under Rule 57A of the Central Excise Rules. Likewise, in the case of Freon TDA 35-X, he pleaded, the work pieces have to be dried after the same had been taken through various processes of heating and cooling when the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade by the appellant and has merely ruled out their claim in this regard without examination of the facts. 3. The learned DR adopted the reasoning of the lower appellate authority. 4. We have carefully considered the submissions made before us and gone through the records. It is seen from the write up given and the literature produced that both Argon gas and Freon T-DA 35-X are used in the man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ately result in some damage to the pieces. In as much as the drying has to be done before the finished product is put in the market stream the use of the item in question, therefore, has to be taken to be in or in relation to the manufacture of the finished product. In view of the above we hold that the appellant s plea has to be allowed with consequential relief. The appeal is, therefore, allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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