P.K. Desai, Member (J)

1. Both the appeals are directed against the Order-in-Appeal No. KW/308/91 BRD dated 31-10-1991 of the Collector of Central Excise (Appeals) Bombay confirming Orders-in-Original Nos. 57/91 and 58/91 dated 21-3-1991 of the Asstt. Collector of Central Excise Div. IV Vadodara disallowing MODVAT credit in respect of Nitrogen Gas used in or in relation to their final product MMA Monomer, and confirming the demand for Rs. 26,585.83 and Rs. 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. Collector, why the amounts (as subsequently confirmed) should