9911796707
TMI Blog2006 (1) TMI 314X X X X Extracts X X X X X X X X Extracts X X X X ..... generated at their Dahej unit from raw materials brought in as inputs on which credit is availed. This input, Naphtha, was received at Dahej unit and was used in generating electricity. A portion of the electricity so generated was supplied to an another unit of the appellants situated at P. O. Petrochemicals, Ranoli, Dist. Vadodara, Gujarat. For the aforesaid supply to the Ranoli unit, proportionate Modvat credit corresponding to Naphtha used in generation of electrical power was being reversed. 4. Show Cause Notices were issued for the recovery of Modvat credit availed of duty paid on Naphtha, on proportionate basis for such quantity of Naphtha, which was used in running or starting of the Turbines at Full Speed No Load (hereinafter ref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... electricity to Ranoli Plant, therefore, had to be considered in light of this report filed by their Engineer. The ld. Adjudicator has failed to take into consideration the report of the Chartered Engineer. 7. In Appeal No. 2259, the Commissioner (Appeals) had remanded the matter to the original authority with certain observation and direction to obtain technical expert opinion with regard to Raw Naphtha, which could be attributable towards the generation of electricity and accordingly, the original authority had requested the assessee to supply the costing of electricity by a Cost Accountant and also independent technical expert opinion. The Revenue appointed an independent Cost Accountant-cum-Chartered Engineer to study the entire matte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y Grid. Therefore, it is only the Naphtha and the credit availed on such Naphtha, which would go into production of actual electricity transferred out of the premises where it was generated i.e. proportionate quantity of Naphtha to actual electricity generated can only be denied the credit and recovery thereto could be effected. In the present case, it is an admitted position that proportionate credit on Naphtha actually utilised on electricity transmitted to the other unit at Ranoli has been reversed would induce us to grant this appeal by following the decision in the case of M/s. Essar Steel Ltd. 9. The use of the FSNL quantity of Naphtha would be a use, for start up in generation of electricity, which is being consumed by the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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