TMI Blog1992 (8) TMI 303X X X X Extracts X X X X X X X X Extracts X X X X ..... MMA Monomer, and confirming the demand for ₹ 26,585.83 and ₹ 15,895.95 for the period April 1990 to August 1990 and September 1990 to December 1990 respectively. 2. The appellants are the manufacturers, amongst others, of an item known as MMA MONOMER, and have opted for the benefit under the MODVAT Scheme, claiming Nitrogen gas as used in relation to their final product, they took the credit for the duty paid on the said gas. The jurisdictional Range Superintendent, however served two show cause notices dated 20-9-1990 and 30-1-1991, alleging that such a credit was not available to them as the Nitrogen gas did not act as an input in their final product, and called upon the appellants to show cause to the jurisdictional Asstt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was being used as such. They pleaded that, though Nitrogen gas did not go into the product mix nor did it effect any chemical reaction in the product, the same was consumed in relation to the final product as, but for the said inert gas, the desired final product would not be available. Adjudication proceedings were conducted and the Asstt. Collector came to the conclusion that the Nitrogen gas was being used only to create inert atmosphere for safe and continuous operation of the plant, where MMA Monomer was being manufactured but the same did not take part in chemical reaction. According to him the gas at best, could be said to have been used as requirement of the process and not as an input, and could be said to have been used to create ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here Silicone Spray used for cooling the mould surface to prevent moulded parts sticking to the mould surface during injection moulding of thermo-components, though adding to output of the machine and improving the quality of the moulded product, is held eligible to availment of credit for the final product of plastic moulded parts. (3) of the South Regional Bench of CEGAT in Andhra Pradesh Paper Mills Ltd. v. Collector - 1992 (19) E.T.R. 804 where also credit for soda ash and alfloc used for water treatment plant for softening water to be used in manufacture of paper, is also allowed. (4) of the South Regional Bench of CEGAT in Addisons Co. Ltd. v. Collector - 1990 (48) ELT 281 (Tribunal) where anti-rust and anti-corrosion oil applied to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the excluded category. He has reiterated the reasonings adopted by the authorities below in confirming the demand. 5. Considering the submissions made and perusing the record, there appears no dispute over the point that the appellants have duly opted for the benefit under the Modvat Scheme by filing appropriate declaration declaring Nitrogen gas as input for their final product MMA Monomer. There is also no dispute over the issue that Nitrogen gas is an approved input and MMA Monomer as declared final product vide Rule 57A of the Rules, and are covered under the Modvat Scheme. 6. From the record, and particularly from the orders passed by both the authorities below, it becomes clear that they do not dispute or disbelieve the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned advocate for the appellants, as to what type of uses could be construed to be uses in relation to the manufacture , the process of manufacture and the stage and purpose of use of Nitrogen gas, clearly indicates that the same has to be taken as used in relation to the manufacture of MMA Monomer. 9. The adjudicating authority has, in his order-in-original in para 5, observed that the said use of Nitrogen gas can be considered or used in or in relation to create inert atmosphere. But he failed to realise that creation of such an atmosphere is only for the purpose of manufacture of MMA Monomer, as, without such an inert atmosphere, the final product could not be manufactured. His drawing of the conclusion that even then it can nev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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