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2015 (10) TMI 684 - ANDHRA PRADESH HIGH COURTDenial of CENVAT Credit - whether the petitioner, i.e., assessee is entitled to the Modvat credit for the high speed diesel oil used by it for generation of captive power for its cement plant. - Held that:- Assessing Officer, the Appellate Commissioner and the Tribunal took uniform view that the petitioner is not entitled to the Modvat credit. - high speed diesel utilized by the petitioner in generating power can be treated as one of the inputs for manufacture of the end product, viz., cement. However, not every item, which suffered Excise duty, which goes into the manufacture of item, would qualify for the Modvat credit. Rule 57B of the Central Excise Rules, 1944 enlists the goods or items, which qualify for the credit. The high speed diesel oil was never mentioned in the Rule and, by process of interpretation, in certain cases, it was allowed. - Clause 108 of the Act, in its legislated form, was challenged in several matters. In Sangam Spinners Ltd. v. Union of India - [2011 (3) TMI 4 - Supreme Court], the Hon’ble Supreme Court upheld the validity of the Act. - Decided against assessee.
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