TMI Blog2016 (11) TMI 772X X X X Extracts X X X X X X X X Extracts X X X X ..... 0) TMI 23 - HIGH COURT, PUNJAB AND HARYANA] where it was held that the credit on furnace oil which was used as fuel is not required to be reversed - As the issue has already been settled in favour of the appellant, therefore, we hold that the furnace oil used as fuel by the appellant for manufacture of dutiable as well as exempted final products, the appellant is not required to be reversed credit availed on furnace oil which has been used as fuel. Appeal allowed. - Appeal No. E/3582/2006-Ex(DB) - FINAL ORDER NO. 61532/2016 - Dated:- 4-10-2016 - Mr. Ashok Jindal, Member (Judicial) And Mr. Devender Singh, Member (Technical) Shri Naveen Bindal, Advocate for the appellant Shri Harvinder Singh, AR for the respondent PER: AS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved with the said order, the appellant is before us. 3. Learned Counsel for the appellant submits that the issue has been settled by the Hon'ble Punjab and Haryana High Court in the case of Super Auto (I) Ltd.-2008 (221) ELT 41 (P H) wherein it was held that the credit on furnace oil which was used as fuel is not required to be reversed. Therefore, as the issue has already been settled, in that circumstance, the impugned order is to be set aside. 4. On the other hand, learned AR reiterated the findings of the impugned order. 5. Heard the parties and considered the submissions. 6. On careful consideration of the submissions made by both sides, we find that the similar issue came up before the Hon'ble Punjab and Haryana Hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isions of sub-rule (9) of that Rule are complied with. (3) Sub-rule (2) shall not apply to inputs intended to be used as fuel. x xx x xxx xxx xxx 57CC. Adjustment of credit on inputs used in exempted final products or maintenance of separate inventory and accounts of inputs by the manufacturer. - (1) Where a which is chargeable to duty as well as in any other final product which is not chargeable to duty and the manufacturer takes credit of the specified duty on any inputs (other than inputs used as fuel) which is used or ordinarily used in or in relation to the manufacture of both the aforesaid categories of final products, whether directly or indirectly and whether contained in the said final products or not, the manufacturer s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on such items. 9. It is, thus, clear that the provisions of sub-rule (2) of Rule 57C and sub-rule (1) and (9) of Rule 57CC of the Rules do not apply to inputs intended to be used as fuel. In the instant case, there is categorical finding that furnace oil is used as 'fuel' only. Therefore, the view taken by the 'Tribunal' is unassailable and the respondent-assessee has been rightly held to be entitled to 'Modvat Credit'. Therefore, the question of law is decided against the revenue by confining it to cases where the input is intended to be used as 'fuel' as the facts in present case reveal. 8. Further, the issue came up before the Hon'ble High Court of Madhya Pradesh in the case of Flex Chemicals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d (9) is not required in case of inputs used as fuel. Further, Rule 57CC(1) and 57CC(5) of the Rules also stipulates that the condition of these rules are not applicable on inputs used as fuel. In the present case, the respondent No. 1 is manufacturing PET Chips as their own final product and removing the same on payment of duty. 13 . As per the finding of the Deputy Commissioner vide its order dated 29-9-1999 the respondent No, 1 assessee is manufacturing PET Chips as their own final product and removing the same on payment of duty. The assessee are also manufacturing same final product i.e. PET Chips on job work basis by using the raw material supplied by the principal manufacture i.e. M/s. Flex Industries Ltd., Noida. The PET Chi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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