The Indian Seamless Metal and Vs. Cce

1. shri m. p. battin, sr. officer - excise appeared on behalf of the appellants and he submitted that the hydraulic oil used in the machinery for its smooth functioning, is eligible for modvat credit in view of the following decisions:commissioner of customs and central excise meerut v. modi rubber ltd. 2. the learned representative contended that the hydraulic oil used in the machinery is essential for the working and indirectly connected with the manufacture of the final product. hence the same would be eligible for modvat credit. in this regard, he heavily relied on the larger bench decision (supra).3. shri m.h. sheikh, ld. jdr appeared on behalf of the revenue and he contended that the hydraulic oil used for running the machinery, certainly cannot be considered as being used in or in relation to the manufacture of final product and as such it is not eligible for modvat credit and the commissioner (appeals) has rightly denied the same following the decision in the case of kanoria sugar and general meg.co. ltd. v. cce wherein the tribunal held that lubricants and greases used merely for the better operation of machinery were held ineligible for modvat credit.4. after hearing rival submissions, perusal of the case laws and records, i find that the decision of the larger bench in the case of modi rubber ltd. (supra) is squarely applicable in the case of appellants in their favour. therefore, i have no hesitation in allowing the appeal filed by the appellant. i, therefore, set aside the impugned order and allow the appeal filed by the appellant with consequential relief, if any.