Kinetic Engineering Ltd. vs Commissioner Of Central Excise on 20 February, 2004
3. The respondents, in their cross objection, have placed reliance on the Cegat judgment in the case of Sipta Coated Steel Ltd. Vs. Commissioner of Central Excise, Aurangabad reported in 1998 (99) ELT 533 (Tri) wherein the ratio of the judgment in Kanoria Chemicals (supra) was considered and it was held that the credit is permissible, as the use of lubricant oils and Hydraulic oils is essential for friction free operation of machinery and operation of machinery respectively. The Tribunal vide order No. CI-152/99-WZB dated 21.1.99 in the respondent's owen case allowed the credit on the said items. Besides the judgment of the larger bench of the Tribunal in the case of Modi Rubber reported in 2000 (119) ELT 197 (L/B) also holds the view that credit is permissible on lubricants and hydraulic oil.