9911796707
TMI Blog1997 (12) TMI 428X X X X Extracts X X X X X X X X Extracts X X X X ..... of electricity which in turn is used by the appellants in electrolysis process for manufacturing of caustic soda. 2. By the impugned order Modvat credit taken by the appellants on LSHS and Furnace oil during the period April, 1994 to 15 March 1995 amounting to Rs. 1,02,44,698.07 was dis-allowed. The Collector held that the said goods could not be treated as inputs in terms of Rule 57A since the product obtained was electricity which is energy and, therefore, not goods nor an intermediate product for purposes of Rule 57D (2) of the Central Excise Rules, 1944. Further, the power generated was not exclusively used for the production of the final product but in other parts of the plant for lighting, running motors used for fabrication wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... intermediate product used in or in relation to the manufacture of their final product. Further, electricity was itself 'goods' under erstwhile Tariff Item 11E and under Sub-heading 27.16 under the New Tariff. It was not also in dispute that after amendment of Rule 57A with effect from 16-3-1995 inputs used for generation of electricity used within the factory of production or for any other purposes had been specifically included in the explanation to Rule 57A, as per Notification No. 11/95-C.E. (N.T.). Therefore, availment of Modvat credit on such inputs after 16-3-1995 was not in dispute irrespective of whether such electricity generated is required to be used as an input in the manufacture of the goods or otherwise. He also drew attentio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise v. Batliboi & Co. - 1997 (89) E.L.T. 696 and Rathi Alloys and Steel Limited v. Collector of Central Excise - 1997 (93) E.L.T. 594. 4. Countering the argument of the ld. Counsel for the appellants Shri D.K. Nayyar, ld. JDR drew attention to the decision of the Tribunal in Ferro Alloys Corporation v. Collector of Central Excise, reported in 1997 (70) ECR 841 (Tribunal) = 1997 (20) RLT 778 in which the South Regional Bench had held that LSHS oil and furnace oil used as fuel oil for captive generation of electricity used in the production of the final product will not be eligible for Modvat credit as an input under Rule 57A prior to or even after the amendment of Rule 57A in 1995 as the same cannot be said to have been used in or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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