1997 (1) TMI 217

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..... . [Order]. - The above appeal arises out of the order of the Collector of Central Excise (Appeals), New Delhi disallowing Modvat credit on the following items : 1. Trichloro Ethylene 2. Silicon Spray 3. Diphyle Oil 4. Freon & Mefron The ground for denial is that these items are not used in or in relation to the manufacture of the appellants' final product namely Polyest .....

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..... icon spray, which is sprayed on the holes of jets, is to ensure proper spinning of the yarn and fibre and in fact after being sprayed, the silicon spray becomes a part of the fibre or yarn which is spun. The order of the Tribunal cited above covers this item also and hence, following the ratio thereof, I extend the benefit of Modvat to this item also. (3) Diphyle Oil : This is a heating medi .....

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..... been extended to these two gases used by the appellants therein in the refrigeration plant for keeping inputs at a particular temperature to enable chemical reaction for manufacture of caustic soda to take place, would squarely apply on all fours to the present case. Following the ratio of that order, I hold that Modvat credit is available on Freon and Mefron used by the appellants for chilling D .....

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