TMI Blog2002 (1) TMI 216X X X X Extracts X X X X X X X X Extracts X X X X ..... ined that the appellants SGK Industries had procured and installed 160 KVA DG Set and availed the Modvat credit of Rs. 57,891/- on 15-12-95. On 3-9-96, the Superintendent of Central Excise visited the factory and observed that the appellants were supplying a portion of the surplus electricity generated from the DG Set to a neighbouring industry. The Superintendent informed the appellants that the supply of electricity to the neighbouring industry is not as per law and the Modvat credit availed was not admissible. He accordingly directed the appellants to reverse the entire Modvat credit on 3-9-96. Subsequently show cause notice was issued disallowing and demanding Modvat credit in addition to proposing equivalent penalty under Section 11AC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion to deny the Modvat credit. He said that Supreme Court in the case of Jawahar Mills Ltd., reported in 2002 (132) E.L.T. 3 (S.C.) held that the only requirement in respect of goods enumerated in Explanation 1(c) under Rule 57Q(1) is that the same should be used in the factory of the manufacturer. He referred to the decision of the Bombay High Court in the case of Sudarshan Chemical (P) Ltd. v. U.O.I. Others reported in 1979 (4) E.L.T. (J275) wherein it has explained the meaning of the word 'used' and accordingly the word 'used' means common, ordinary, main or predominant use. He also relied upon the decision of the Allahabad High Court in the case of Varuna Sulphonators Pvt. Ltd. v. U.O.I. reported in 1993 (68) E.L.T. 42 (All.) wherein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 57R(2) introduced through Notification No. 11/95, dated 16-3-95, which is as under : "Provided further that the credit of specified duty shall be allowed in respect of capital goods used for generation of electricity, used within the factory of production for manufacture of final products or for any other purpose." He said that the above Rule 57R(2) is not clarificatory in nature but specifically introduced imposing the some condition with reference to the availing Modvat credit in respect of capital goods. The terms and conditions used in Rule 57R(2) are similar to third proviso in sub-rule (2) of Rule 57D. Rule 57D specified that the credit of duty shall be allowed in respect of inputs which are used for generation of electricity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r side is not applicable to the facts of this case as they were held in different contexts. 6. I have carefully considered the submissions made by both sides. Rule 57R(2) Second proviso inserted by Notification No. 11/95 specifies that "Provided further that the credit of specified duty shall be allowed in respect of capital goods used for generation of electricity, used within the factory of production for manufacture of final products or for any other purpose". I am not convinced with the argument advanced on behalf of the party that the wordings 'for any other purpose' denote electricity generated can be used not only in the factory of production but for other purposes and elsewhere also. In the context, the wording 'any other purpose' ..... X X X X Extracts X X X X X X X X Extracts X X X X
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