2009 (3) TMI 695

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..... on for the respondent despite notice, nor any request for adjournment. I have examined the records and heard the learned DR. 2. The Respondents were engaged, during the period of dispute, in the manufacture of various kinds of paper. They used furnace oil as fuel for generation of steam which, in turn, was used for the drying of paper. They availed MODVAT credit of the duty paid on such furnace .....

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..... r of Central Excise, Aurangabad - 2003 (152) E.L.T. 126 relied on by the lower appellate authority is not applicable to the facts of the instant case. The learned DR, however, has not been able to rule out the applicability of the other decision (Navsari Oil Products Ltd. v. CCE, Surat - 2003 (55) RLT 96 relied on by the Commissioner (Appeals), to the instant case. In that case, furnace oil was us .....

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..... hing contained under Rule 57A . These legal provisions were examined by the Hon ble Supreme Court in the case of Commissioner of Central Excise, Vadodara v. Gujarat State Fertilizers Chemicals Ltd. - 2008 (229) E.L.T. 9 (S.C.) and it was held that MODVAT credit of duty paid on LSHS, which was used to produce steam which, in turn, was used in the manufacture of fertilizer, which was exempt from p .....

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