R. Jayaraman, Member (T)

1. This is an appeal directed against the order of the Collector of Central Excise (Appeals), Bombay bearing No. R-642/BII-249/88 (File No. V-2(CH. 72) 1012/88) dated 24.11.1988 rejecting the appellants appeal for availment of MODVAT benefit in respect of certain inputs used in or in relation to the manufacture of iron and steel castings.

2. Brief facts for the purpose of disposal of this appeal are as below:

3. The appellants are engaged in the manufacture of iron and steel articles. They applied for availment of the MODVAT benefit of the following inputs, namely Acetylene gas, flourspar, binders (foundry chemicals), sleeves, graphite stopper head, fireclay, ramming mass and refractories. The department objected to the availment of MODVAT benefit in respect of the aforesaid duty-paid inputs on the ground that they are not admissible under the relevant rules in MODVAT scheme. In the adjudication proceedings initiated by the Assistant Collector, it was held that these inputs are not eligible for availment of MODVAT credit and confirmed the demands raised under the show cause notices dated 3.10.1987, 6.1.1987, 16.4.1987, 23.4.1987, 6.7.1987, 6.10.1987 , and