TMI Blog2006 (9) TMI 467X X X X Extracts X X X X X X X X Extracts X X X X ..... luminium Chloride, Hydrocloric Acid, Sodium Hydroxide of Caustic Soda, Anti-corrosive Chemicals namely Aquat, Calcium Chloride, etc. were used by the applicants in the generation of super-heated steam for running the Turbine for the purpose of generation of electricity. 1.3 After the super-heated steam runs the turbine, it gets exhausted and residual steam has lesser heat value. Such exhausted or residual steam is used in the factory for the manufacture of VSF and other final products. Some quantity of this residual steam is transferred to appellants Engineering Division, Chemical Division and some quantity of residual is also sold nearby units like Grasim Jankalyan Trust, Bharat Commerce and Industries Ltd., Gwalior Chemicals? Shubham Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 In terms of Rule 57B(1)(iv), notwithstanding anything contained in the Rule 57A, the manufacturer of final product shall be allowed to take credit of specified duty paid on the goods used for generation of electricity or steam used for manufacture of final products or for any other purpose, within the factory of production. The basis in the impugned order to invoke the provisions of Rule 57CC(1) is that the appellants had taken Modvat credit on certain quantity of inputs which were used in the generation of steam, which was cleared outside the factory without payment of duty. It is submitted that Rule 57CC(1) would be applicable only if Rule 57C can be made applicable and that the provisions of Rule 57C are not applicable to the present c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of super-heated steam is a by-product and hence the Modvat credit on inputs used in the generation of steam is protected by Rule 57D(i) and not hit by Rule 57C. Therefore, provisions of Rule 57CC(1) are not attracted. This position is now settled by the decision of the CEGAT in the case of Arti Drugs v. CCE, [2001 (133) E.L.T. 385 (Tri.) = 2001 (45) RLT 213 and by the decision of the CEGAT in the case of Gas Authorities of India v. CCE, 2001 (136) E.L.T. 1019 (Tri.) = 2001 (47) RLT 740. 2.5 The payment of 8% of the sale price of pasturised milk and ghee hit by the dairy is clearly unsustainable in law. Firstly, the dairy is not within the appellant s factory. Also, the trust is separate legal entity. The exhausted steam is sold by the app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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