TMI Blog2007 (2) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... generation, part of excess electricity was diverted - 967 of 2006 - - - Dated:- 1-2-2007 - [Order (Oral)]. - Heard Shri Purvish J. Malkan, learned counsel for the appellant. 2. The following substantial question of law is proposed for admission of this appeal. "Whether or not revenue Department can recover proportionate Modvat/Cenvat Credit on duty paid Naptha which is used in starting of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was no additional load generated, there was no reason to deny the credit on FSNL quantity for the use of generation of electricity utilized within the Dahej unit. The mere technological necessity of rolling out the extra load of electricity to the sister unit will not lead to a conclusion that the FSNL quantity in its entity was not required for the Dahej unit. It is the technology reality that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be met. In this view of the matter, the proportionate recovery of the credit or reduction of FSNL quantity, which is found to be imperative requirement for use in the Dahej unit, cannot be upheld." 4. Considering the reasons given that for generation of electricity to start, some Naptha is used. Thereafter, part of the electricity was transferred, that cannot be said that part of proportiona ..... X X X X Extracts X X X X X X X X Extracts X X X X
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