GENERAL INDUSTRIAL SOCIETY LTD Vs. COLLECTOR OF CENTRAL EXCISE
LAWS(CE)-1991-10-5
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on October 30,1991

Appellant
VERSUS
Respondents

JUDGEMENT

K. Sankararaman, Member (T) - (1.) THE appeal by THE General Industrial Society Ltd. is directed against the order dated 17-8-1990 passed by the Additional Collector of Central Excise, Calcutta-II Collectorate demanding a sum of Rs. 1,76,328.53 from them on account of modvat credit, which he held they had irregularly availed of. He had, in addition, imposed a penalty of Rs. 10,000/- on them.
(2.) The appeal was posted for hearing on 27th September, 1991. None appeared for the appellants. However, Advocate Shri A.C. Gupta had represented them when their stay application had been heard on 11-6-1991. He had submitted that the issue is covered by decided case law in their favour. Trade Notices had been issued by the different Collectorates regarding the admissibility of modvat credit in respect of oxygen and acetylene gas and arc welding electrodes in supersession of earlier instructions to the contrary. Stay had been granted accepting his arguments. Shri B.B. Sarkar, learned Departmental Representative is present on behalf of the respondent Collectorate. He fairly conceded that the department has since reversed its earlier stand and is now granting modvat benefit as pointed out by the learned Counsel during the hearing of the Stay Petition.
(3.) WE have considered the submissions made in the matter. WE have perused the appeal petition. WE had already held in Collector of Central Excise v. Hindustan Development Corporation -1990 (47) E.L.T. 376 that oxygen and acetylene used in the manufacturing process would be eligible for modvat benefit. A third input, in the present appeal is arc welding electrode. It has been explained that these are used for joining two metals and during the process of joining by source of heat the electrode material gets deposited and thereby jobs the metals in the process of manufacture.;


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