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2007 (1) TMI 460 - AT - Central ExciseCenvat/Modvat - furnace oil used as Fuel for generation of electricity - manufacture of final product - Inputs sent outside for job work - provision of Rule 4(5) of the Cenvat Credit Rules, 2002 - HELD THAT:- Since tanks are earmarked for exclusive use of M/s. IRTL, they belong to them and accordingly receipt in the tanks of IRTL will amount of receipt by M/s. IRTL. There is no evidence from revenue that no payment was being made for hiring tanks by M/s. IRTL. In that view of the matter it can be considered that the inputs were received by M/s IRTL only. We further find that the CBEC vide its Circular No. 637/28/02 has clarified that the Cenvat credit is admissible only when inputs or capital goods are used by the manufacture within the factory premises (except when inputs or capital goods are used/sent for job work outside factory). Since in this case the inputs have been sent outside for job work, the present case is squarely covered by this clarification and therefore the furnace oil satisfy the definition inputs under Rule 2(g). Further furnace oil used as fuel is covered by the main definition of inputs under Rule 2(g) which says ‘inputs means all goods except high speed diesel oil used in or in relation to the manufacture of final product whether directly or indirectly or whether contained in the final product or not ’ The rule does not say ‘inputs means all goods except goods used as fuel’ and therefore no exception can be made in respect of fuel as long as it has been used in or in relation to the manufacture of final products. In view of the same, we hold that the appellants have correctly availed of the credit and accordingly the Commissioner’s order is set aside. Appeal is allowed.
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