K. Sankararaman, Member (T)

1. We have before us a two pronged attack on the Order-in-Appeal dated 20-8-1990 passed by the Collector of Central Excise (Appeals), Calcutta holding that the appellants before him M/s. Straw Products Limited were eligible for modvat credit in respect of chemicals and resins used by them for treatment of water in the course of manufacture of paper as also felt used for manufacture of paper but not so eligible in regard to wire netting of stainless steel and of phosphor bronze used for the same purpose. That part of the order favourable to Straw Products has been assailed by the Collector of Central Excise, Bhubaneswar which is now before us as Appeal No. E-396/90. They, on their part, have filed their appeal registered as E-395/90, aggrieved with that part of the order denying them modvat benefit in respect of wire netting of stainless steel and of phosphor bronze.

2. Both the Appeals were heard together by us and are disposed of by this common order.

3. The department's appeal was taken up first when Shri A. Choudhury, learned Departmental Representative argued their case. He referred to the contentions raised in the appeal and emphasised the point t