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2015 (7) TMI 665 - HC - Central ExciseMODVAT Credit - Capital goods - Captive consumption - Held that:- Quite apart from the decision of the Chennai Bench in case of Kothari Sugars & Chemicals Ltd. (2005 (11) TMI 124 - CESTAT, CHENNAI), we are informed, is carried in appeal before the Madras High Court and is pending, we notice that the Supreme Court in case of Collector of Central Excise v. Solaris Chemtech Limited reported in [2007 (7) TMI 2 - SUPREME COURT OF INDIA] has occasion to deal with a substantially similar issue. It was held that when inputs are used to generate electricity which are captively consumed for manufacture of final product, the assessee would be entitled to Modvat Credit in view of the expression “used in relation to the manufacture” used in the statute. - The situation might have been different had the Revenue succeeded in establishing that the electricity generated by the assessee was not used captively but sold outside - Decided against Revenue.
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