ORDER
P.K. Desai, Member (J)
1. The Cross Objection filed are in the nature of reply to the Appeal Memorandum, and hence are being disposed of by this order.
2. The Appeal by the Department is against the Order-in-Appeal No. GS/38/B.H/93 dated 9-2-1993 of the Collector of Central Excise (Appeals), where he has allowed the Modvat credit on Foundry Chemicals and Fluxes, holding the same as inputs used during the course of manufacture of the finished products, to remove impurities and to provide the required hardness to the finished product.
3. The Department has filed the appeal pleading that they are not these items could be construed as inputs eligible for availment of Modvat credit.
4. Heard Shri K.M. Mondal, the ld. SDR for the Appellants and Shri J.N. Pikle the ld. Advocate for the Respondent.
5. Even going by the order passed by the Assistant Collector, it has been accepted that the Foundry Chemicals & Fluxes are mixed in the molten metal and they act as ingredient to remove the impurities and foreign particles from castings. The very use admitted by the Adjudicating Authority indicates that these items are essential for the purpose of removal of impurities and are used in relation to the manufacturing of the final product. The contention raised by the Department, for the purpose of denial of modvat credit, does not appear to be justified, and the Appeal appears to have been mis-conceived in as much as the very use, accepted by the Department, has been overlooked. The Appeal does not merit any consideration and is therefore rejected.
