1997 (4) TMI 241

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..... Member (T)]. The issue for decision in this appeal is whether the assessee is entitled to Modvat credit of the duty paid on fuel oil and light diesel oil used to generate steam which is used in or in relation to the manufacture of pigments. 2. The representative of the appellant explains that steam which was obtained by burning the fuel oils was used either in the reaction vessel in which .....

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..... ed till the finished products pigments are obtained. For a product to be considered as an intermediate product it has to arise in the course of manufacture of the finished products that is to say, it must come into existence in the course of, or as a result of the various reactions or transformations that take place at various stages along the path commencing with the entrance of the raw materials .....

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..... or steam used for the manufacture of final product or for any other purpose of the production factory. The amendment, he says, makes manifest the position that prior to such amendment, credit was not available on inputs used for this purpose; if it were there would be no need for the amendment to be introduced. 4. In the Tribunal s decision cited by the appellant, it held that credit could be t .....

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..... tanding the fact that they were exempted from duty, credit could be taken of the duty paid on chemicals used in the manufacture. 6. As far as the appellant is concerned, steam is thus a final product. It may perhaps be an input in the sense it is used in the manufacture of final product and it has been claimed by the appellant to be an intermediate product. The appellant has at no stage claimed .....

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..... on. Introduction of this amendment, therefore, cannot lead to the inescapable conclusion that prior to its amendment the legislature did not intend to consider steam as an intermediate product. In any event, the question of going into the intention does not arise as the words used are plain enough and can be understood in their ordinary sense. 7. Appeal allowed. Impugned order set aside. - - .....

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