CCE Vs. STAINLESS INDIA LTD.

JUDGEMENT

(1.) This appeal is filed by the Revenue against the order of the Commissioner (appeals).

(2.) The respondents are manufacturers of M.S. ingots, slabs and billets etc. falling under Chapter 72 of the Central Excise Tariff Act. They were availing modvat credit on asbestos yarn and texti packing. They were denied modvat credit on asbestos yarn and texti packing under heading "capital goods". But on appeal, when the case was remanded back by the Tribunal to the Commissioner (appeals) to examine the same as inputs; Under the impugned order, the Commissioner (appeals) allowed the credit on asbestos yarn and taxti packing as inputs under Rule 57A of the Rules.

(3.) Shri Randhir Singh, learned JDR appearing for the Revenue pleaded that asbestos/texti is not used in the manufacture of final products but it is used as wrapping on the pipe lines carrying gases. He therefore pleaded that these do not take part in or in relation to the manufacture of final product and, therefore, the order of Commissioner (appeals) is not correct in allowing the credit on asbestos/texti as inputs.