TMI Blog2017 (7) TMI 517X X X X Extracts X X X X X X X X Extracts X X X X ..... he said steam was transferred altogether to a different unit situated outside the factory premises. Therefore, the case of the assessee would come under Rule 57B(1)(iv) - demand upheld - appeal allowed - decided in favor of Revenue. - E/305/2006 - Final Order No. 41015/2017 - Dated:- 15-6-2017 - Smt. Sulekha Beevi C.S., Member (Judicial) And Shri V. Padmanabhan, Member (Technical) Shri S. Nagalingam, AC (AR) for the appellant None for the Respondent ORDER Per Bench The brief facts of the case inter-alia are that the appellants are manufacturers of Polyester Staple Fibre and avail Cenvat credit on the inputs viz., Furnace Oil which is used in the generation of steam. Part of the steam generated is used by the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... avour of Revenue. 3. None appeared on behalf of respondent even though notice was issued. The matter was taken for disposal after hearing the department as well as perusal of records. 4. The Tribunal in the appellant s case reported in 2005 (192) ELT 487 (Tri-Chennai) held that naphtha is covered by the expression goods used as fuel and is eligible for Modvat credit, irrespective of its use for generation of electricity. The Commissioner (Appeals) in the impugned order had relied upon the decision passed by the Tribunal. Against this decision the Revenue filed appeal before the Hon ble High Court and vide judgment reported in 2013 (297) ELT 515 (Mad) the issue stands decided in favour of Revenue. The relevant portion is reproduced as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he learned counsel, naphtha was used for manufacture of steam, which in turn was used for generation of electricity and the electricity was supplied to M/s. Futura Polymers Ltd., which is a 100% export oriented unit. The learned counsel by placing reliance on Rule 57C(1)(ii) contended that in case supply is to a 100% export oriented unit, the strict Rule of usage of the inputs used for generation of electricity used for manufacture of final product within the meaning of Section 57B(1)(iii) would not arise. The issue now raised by the assessee was not raised before the CESTAT. The CESTAT proceeded on the basis that naphtha was covered by the expression goods used as fuel and as such, it was eligible for Modvat credit irrespective of the natu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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