TMI Blog2016 (8) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... TA, AGP ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVERI) 1. By way of these appeals, the appellant has challenged the order of the Gujarat Value Added Tax Tribunal, Ahmedabad, (for short, the Tribunal ) in Second Appeal Nos.59, 55, 84 of 2001 and order dated 25.10.2007 passed in Revision Application No.132 of 2000 along with order dated 17.7.2008 passed in Misc. Application Nos.7 to 10 of 2008 and order dated 7.8.2008 passed in Rectification Application Nos.2, 3 and 4 of 2008. 2. At the time of admission of these Appeals, following questions of law were framed:- (1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law the use of the furnace oil as processing materials or co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of AMI Pigments Pvt. Ltd. and Others (supra), this Court held that Since the policy of the Government is to promote observed as under:- Since the policy of the Government is to promote more and more captive generation of power, it must be interpreted that if there is a composite plant, the industry must be eligible for exemption for all processes by which the manufacture takes place in such a plant and, therefore, it can validly purchase goods used as fuel for the generation of heat and energy for using in the manufacturing process. If not, it would lead to an anomaly that if raw material used to generate power in a power plant, it will be exempted but if the raw material is used to generate power in a composite plant manu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would be commercially inexpedient will have to be treated as being used either as processing materials or consumable stores in the manufacture of goods. However, where the excess electricity is used for any other purpose including for distribution by grid or by joint ventures or by vendors, and that too for a price, the nexus between the process and the use gets disconnected. In such a case, it cannot be said that the electricity generated is used in or in relation to the manufacture of final product. Therefore, to the extent of use of electricity for the purposes other than manufacturing activities or not connected therewith they would not be considered as raw materials, processing materials or consumable stores. 7. In view of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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