Per V.P. Gulati :

This appeal arises out of the order of the C.C.E. (Appeals), Bangalore. Under the impugned order, the appellants have been denied the benefit of modvat credit in respect of certain inputs.

2. The learned Consultant has urged as under in respect of each one of them :

(1) Oxygen in Cylinder/Dissolved Acclytene

The learned Consultant has referred us to the use as stated in the notes submitted. It is clear from the note that both the oxygen and acclytene are being used for maintenance of the equipment. The use therefore cannot be considered in or in relation to the manufacturing process.

Heard the learned DR.

This Tribunal has held in a number of cases that the inputs which are used for the purpose of maintenance of the equipment, the same would not be eligible for the benefit of modvat credit. In view of the above, we hold that the plea of appellants cannot be accepted.

(2) Sulphuric Acid:

The learned Consultant has referred us to the use as stated in the notes submitted. The use of the sulphuric acid is for treatment of water which is used in the cooling system and not as an inprocess material. Cooling system is an equipment and the water used is to make this functiona