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TMI Blog1997 (6) TMI 207X X X X Extracts X X X X X X X X Extracts X X X X ..... spondent. [Order per : G.R. Sharma, Member (T)]. - Shri L.P. Asthana, the ld. Advocate appearing for the appellants, narrated the facts as follows : That the appellants are engaged in the manufacture of POY and Polyester Flat Yarn; that the appellant's product, viz. POY/Polyester flat yarn as well as inputs namely Triethyl Glycol, Alfa Alumina and Silicon compounds are specified items for purpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of M/s. J.K. Synthetics Limited reported in 1996 (84) E.L.T. 203. 2. Regarding Alfa Alumina, the ld. Counsel explained the process of manufacture and submits that Alfa Alumina is used as a filtering medium for hot polymers. He submits that Alfa Alumina is a special type of sand which not only allows filtering but removes the impurities also. The ld. Counsel submitted that this Alfa Alumina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orities insofar as admissibility of Modvat credit of duty on triethyl glycol and silicon compound is concerned. In regard to Alfa Alumina, the ld. JDR submits that this is a component of machinery called spinpack. He submits that since this is a component which comes under the exclusive category and therefore was not admissible for Modvat credit. 4. Heard the submissions of both sides. Insof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the exclusion category under the explanation in Rule 57A. In the circumstances, we hold that Alfa Alumina is an input and shall be entitled to Modvat credit of duty.
6. In view of the above findings, the Appeal is allowed and the Order imposing penalty is also set aside. Consequential relief, if any, shall be admissible to the applicants in accordance with law. X X X X Extracts X X X X X X X X Extracts X X X X
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