K. Sankararaman, Member (T)

1. M/s. Associated Cement Companies have filed this appeal against the order in appeal dated 10-06-1988 passed by the Collector of Central Excise (Appeals), Calcutta, rejecting their appeal in respect of various items claiming benefit of modvat credit as inputs used in or in relation to the manufacture of cement. He allowed the appeal only in respect of grinding media.

2. Shri R.M. Das, learned consultant, argued their case when the appeal came up for hearing. He strongly contended that the goods are definitely eligible for the mod-vat benefit as they satisfy the criteria laid down in Rule 57A being goods used in or in relation to the manufacture of cement. The expression "used in relation to the manufacture" is very wide and would cover the goods in question. He referred to the detailed submissions in the appeal and pleaded that the appeal may be allowed.

3. The arguments were resisted strongly by Sri M.N. Biswas, learned SDR. He supported the order of the Collector (Appeals) which he said correctly reflected the legal position. He pleaded that the appeal may be rejected. The goods for which modvat credit has been claimed, chapter number under which t