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TMI Blog2007 (9) TMI 182X X X X Extracts X X X X X X X X Extracts X X X X ..... hort) and their own Silver Extraction Plant (M/s. FPL and the Silver Extraction Plant of the appellants were 100% EOUs and all the units were working in adjacent premises). They had also availed similar credit on Furnace Oil used for generation of steam which was supplied to M/s. FPL. The appellants had also cleared Demineralised Water (DM Water, for short) and Dealkanised Soft Water (DAS Water, for short) to M/s. FPL without payment of duty. The department issued show cause notice dated 14-9-2000 to the appellants proposing (a) to disallow credit on Naphtha and SKO for the period February, 1998 to March, 2000; (b) to disallow credit on Furnace Oil for the period September, 1995 to March, 2000; (c) to demand duty on DM Water and DAS Water c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of this amount from the appellants under Rule 57-1(ii) read with Rule 57AH and also imposed equal amount of penalty on the party under Rule 57-1(4) read with Rule 173Q(l)(bb). Aggrieved by this decision of the Commissioner, the party filed Appeal No. E/123/2002 and the same was disposed of by this Bench as per Final Order No. 724/02, whereby the relevant issue [issue no. (2) ibid]was remanded to the Commissioner for de novo adjudication. The department filed the present appeal (E/27/2003 against the decision of the Commissioner on issues (3) and (4), there being no grievance against the Commissioner's decision on issue no. (l). 2. After examining the records (including the written submission dated 17-9-2007 filed by counsel) and hearing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 'fuel is not employed in clause (iv) of Rule 57B(1) or in the corresponding part of Rule 57AA(d). The relevant expression is "goods' used for generation of electricity or steam…… ". As "fuel" has already been specified under clause (iii) of Rule 57B(1) and in the corresponding part of Rule 57AA(d), it is obvious that the word "goods" used in clause (iv) of Rule 57B(1) and in the corresponding part of Rule 57AA(d) excludes fuel, and therefore, it should be considered as goods other than fuel, used for generation of electricity….. in the factory of production. In this view of the matter, naphtha is covered by the expression "goods used as fuel" and it is eligible for Modvat credit irrespective of the nature of its use in the factory. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under Rule 173Q. These arguments of JCDR were opposed by the assessees counsel, who submitted that the benefit of exemption under the relevant Notification relating to 100% EOUs was not liable to be denied on technical grounds. In this connection, reliance was placed on the Supreme Court's judgment in Mangalore Chemicals & Fertilizers Ltd. v. Deputy Commissioner of Customs [1991 (55) E.L.T. 437 (S.C.)] and Final Order No. 456/07 dated 20-4-2007 [2007 (214) E.L.T. 316 (Tri)] passed by this Bench in Appeal No. E/491/2000 [Commissioner of Central Excise, Chennai v. M/s. Titan Industries Ltd.]. 4. We have considered the submissions. The question is whether duty should be demanded from the assessee in respect of DM Water and DAS Water cleare ..... X X X X Extracts X X X X X X X X Extracts X X X X
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