TMI Blog2007 (12) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... eraiyan Member (T) [Order per: Archana Wadhwa, Member (J)].- 1. All the four appeals, two filed by the appellant and two by the Revenue are being disposed by a common order as the issue involved is identical. 2. Duties of Rs.3,94,77,347/-, and Rs.6,46,09,589/-stands confirmed against the appellant as also identical penalties imposed on the ground that the fuel manufactured by them and used captively by availing the benefit of Notification No.67/95-C.E.,dt. 16-3-1995, for manufacture of electricity, a part of which was used for dutiable and also exempted goods are not entitled to exemption under the said notification in respect of that part of fuel which has gone into the manufacture of exempted final product. 3. As per the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is liable to pay duty on the fuel manufactured by them inasmuch as the exemption is not available in respect of that part of the fuel which has been used in the manufacture of electricity, which further stands used for the manufacture of exempted product. According to the appellant the entire situation is revenue neutral as after payment of duty on the said fuel, they were entitled to take credit of the same. We find that the said credit was not to be denied to them on the ground of electricity having been used in the manufacture of exempted final products, in terms of the Larger Bench decision in the case of M/s. Gujarat Narmada Valley Fertilizers Co. Ltd. v. CCE, Vadodara - [2007 (208) E.L.T. 342 (Tri. LB)]. It has been held in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nteen etc., in which case the appellant would not have been entitled to credit of duty paid on the fuel. Such legal proposition stands confirmed by the Hon'ble Supreme Court in the case of CCE v. Solaris Chemtech Ltd . - 2007 (214) E.L.T. 481 (S.C.). Apart from laying do that Low Sulphur Heavy Stock used as fuel in the manufacture of electricity is an eligible input for the purposes of Modvat credit, it has been held that the inputs used in electricity generated which is consumed by residential colony of factory worker families, schools etc., will not be eligible inputs for the purposes of Modvat credit. As such that part of the fuel, which has been used in the manufacture of electricity, which has been further used for non-manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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