2000 (7) TMI 136

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the following three questions arises for consideration :- (i)  "Inputs (chemicals) used in generation of steam is not eligible for Modvat credit for the reason that the said steam is used in the production of power (electricity). (ii) Inputs (chemicals) used in the effluent and water treatment plant is not eligible to Modvat credit on the ground that (a) the said plant has no nexus in the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... far as the third issue is concerned, i.e. eligibility of Modvat credit on input which are used to produce final goods which in turn are cleared under bond (under warehousing provisions of Chapter 7 of the Central Excise Rules, 1944), the matter is no longer res integra in view of the decisions cited supra which have been further followed by the Tribunal as noted above. We do not find any merit on .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... at even where steam is used for the generation of electricity, thereafter the steam emerging from the turbines generating electricity is recaptured and further used, albeit at low pressure, in the manufacturing process leading to the emergence of the final products. This fact requires physical verification by the original authority. Therefore, the matter on this count needs to be remanded to the o .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... factory premises of the respondents. Therefore, now that the facts are established on this account, this ground of Revenue appeal fails. As far as the consideration of the nexus between the treated water emerging out of this effluent treatment plant to the manufacturing process for the final products is concerned, we find great merit in ld. Advocate's submission that this is also being a matter o .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... on to differ from the views already expressed in the above noted paragraphs and following the ratio thereof, the first two issues are remanded to the original authority for de novo consideration in the light of the observations already noted therein and the 3rd issue as has been rejected by the bench as noted above, we also follow the ratio thereof and reject the Revenue appeal on this issue. Orde .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X