K.S. Venkataramani, Member (T)

1. This is an application seeking stay of the operation of the order dated 29.2.88 passed by the Collector of Central Excise (Appeals), Madras by which he had set aside the order of the Assistant Collector, Belgaum Division, dated 13.10.87 and held that the respondents herein are entitled to MODVAT credit on intermediate products manufactured by them. Since the issue involved in the appeal itself lies in a short compass and is to be taken up for disposal to-day, the Stay Application is dismissed.

2. Appeal No. E/318/88/MAS. - This appeal has been preferred by the Collector of Central Excise, Belgaum against the impugned order of the Collector of Appeals referred to above. The respondents manufacture Aluminium. They filed declaration under Rule 57G of the Central Excise Rules opting to work under the MODVAT Scheme. They declared recovered Cryolite and Soderburg paste as inputs for the final product, namely, Calcined Alumina. The inputs namely, Cryolite and Sunderburg pasts, are manufactured by them and captively used in producing the final product. They also paid duty on the inputs so captively consumed. Since there was no exemption for such captive