TMI Blog2005 (10) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... used in the manufacture of pulp and took credit only of such inputs which were intended for use in the manufacture of dutiable paper and paper board. 1.2 In respect of fuel oil used in the manufacture of pulp cleared to APR Packaging Ltd. on exempted basis and paper and paper board cleared on payment of duty separate account for receipt consumption and inventory of furnace oil was not maintained due to physical imposibility, they therefore reversed credit as regards furnace oil used in the manufacture of pulp cleared on full exempted rate of duty. In respect of sulphuric acid they separately purchased and accounted for quantities of such acid used in the manufacture of exempted pulp and availed credit, on sulphuric acid used for manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inputs which are intended for use in the manufacture of dutiable goods. 5. However, on verification, it was found that the notice was maintaining separate inventory for the Sodium Sulphate (white) and (yellow), Defoamers Sulfamic Acid but they have not maintained separate inventory for sulfamic acid and furnace oil used in the manufacture of pulp. Moreover, as regard to the chemicals namely, Caustic soda, Elemental Chlorine, Calcium Hypochlorite, Oxygen, Chlorine Dioxide, Sulphur Dioxide, Steam, etc. manufactured and used captively, a separate inventory could not be maintained by them as the same are supplied through pipelines. Since they are having a single digester, the pulp that is to be consumed captively and that is to be supplied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y:- (a) if the exempted goods are- (i) goods falling within Heading No. 22.04 of the first schedule to the Tariff Act. (ii) Low Sulphur Heavy Stock (LSHS) falling within chapter 27 of the said first schedule used in the generation of electricity. (iii) Naphta (RN) falling within chapter 27 of the said first schedule used in the manufacture of fertiliser. (iv) Tyres of a kind used on animal drawn vehicles or handcarts and their tubes, falling within chapter 40 of the said first schedule. (v) Newsprint, in rolls or sheets, falling within Heading No. 48.01 of the said first schedule. (vi) Final products falling within chapters 50 to 63 of the said first schedule. (vii) Naptha (RN) and furnace oil fal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the rigors of the rules. Credit would not be restricted and or required to be reversed in case of fuel. Decisions of this Tribunal under the erstwhile Modvat rules will not be applicable, for fuel, as held in National Engineering Ind. Ltd. - 2002 (150) E.L.T. 161 (Tri.), Indore Iron Steel Mills Ltd. - 2002 (147) E.L.T. 611, CCE v. Indore Steel Iron Mills Ltd. - 2003 (59) RLT 409, CCE v. Super Auto (I) Ltd. - 2004 (61) RLT 750, CCE v. Sudarsanam Spinning Mills - 2004 (166) E.L.T. 461 (Tribunal) = 2004 (62) RLT 70, Hindustan Zinc v. CCE - 2004 (117) ECR 599. Since there is no finding that furnace oil was not used as fuel, the objection to the eligibility to credit and subsequent recovery at 8% cannot be upheld in this case, (c) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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