2005 (7) TMI 389

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..... R, for the Respondent. [Order per : S.S. Sekhon, Member (T)]. Heard both sides and considered. 2. (a) Assessee has been denied exemption on chemicals manufactured and captively consumed in the demineralization of water which is thereafter converted into steam which is used partly to generate electricity and partly for manufacture of final duty paid paper in appellants factory. Steam is .....

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..... r and would be commercially in expedient. In this case, however, the steam generated is used for further generation of electricity which the party might be using for running the plant/some other purpose... Thus the original authority has denied the benefit on a presumption on fear that electricity is used for some other purpose. The use of electricity in the plant would be use of steam (an exci .....

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..... s paper and that steam is getting captively consumed. 5. The plea of the appellant that steam generated at high pressures leads the treatment to generate electricity and is thereafter reduces it super heat, and pressure; it is thereafter used for paper making activity has been ignored by the lower authority. This plea would indicate that all the steam generated is used for paper making and elect .....

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