K. Sankararaman, Member (T)

1. The appeal before us is by Collector of Central Excise, Calcutta-II whose delay in filing it had been condoned by us earlier. The appeal is directed against the order-in-appeal passed by Collector of Central Excise (Appeals) holding that in respect of oxygen gas and dissolved Acetylene Gas, received by M/s. Hindustan Development Corporation Ltd., the present respondents, which prior to 1-3-1986 had been utilised by them in the manufacture of bogies and couplers which were cleared on payment of appropriate duty after the said date, they were entitled to avail themselves of the credit and its disallowance by the Assistant Collector was therefore not called for. He, therefore, set aside the confirmation of demand relating to these two items with directions for the grant of relief to the respondents.

2. The present appeal directed against the aforesaid order proceeds on the basis that the order of the Assistant Collector disallowing the credit was in conformity with the relevant provisions of law and the order-in-appeal setting it aside is not legal and proper. The Assistant Collector passed his order based on the show cause notice which raised two is