TMI Blog1997 (12) TMI 299X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 of cooling tower. 3. Learned Counsel appearing on behalf of the appellants submits that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lants 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 algae formation. He submits that to maintain the required temperature of chilled water and efficiency of the pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 appellants plant is air-conditioned as air-conditioning is pre-requisite to produce nylon polyester yarn. The yarns have to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 steam generation or for cooling water. We have held in another case that they are eligible inputs. East Regional Bench in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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