R. Jayaraman, Member (T)

1. Both the aforesaid appeals are directed against the order of the Collector of Central Excise (Appeals), Bombay bearing No. R-523-524/AUR/89 dated 29-6-1989. Since both the appeals involve consideration of the same issue, they were heard together and hence this common order.

2. The facts of the case for purpose of disposal of the appeals can be briefly stated as below:

The appellants are engaged in the manufacture of iron and steel castings at their foundry. They have sought for availing of modvat credit in respect of the duty paid on the inputs, which are in the nature of certain chemicals going into the preparation of 'sand moulds' for casting. Availment of modvat credit in respect of the said inputs going into the preparation of sand moulds was objected to by the department on the ground that the inputs are used in the preparation of sand moulds, which are in the nature of equipments and hence inputs so used in the preparation of sand moulds would not be eligible for modvat credit in view of the explanation to Rule 57A of the Central Excise Rules. It was also alleged by the department that the sand moulds were final products falling under sub-headin