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TMI Blog2013 (9) TMI 937X X X X Extracts X X X X X X X X Extracts X X X X ..... Mills Ltd. versus Commissioner of C. Ex., Allahabad [2006 (2) TMI 591 - CESTAT, NEW DELHI ]. The learned counsel produced various orders passed by the different Tribunals and they all do support the impugned order of the Tribunal - The learned counsel for the appellant could not refer any statutory regulation or rule to take a different view of the matter - It was logical that if two units were being run at one place, producing two different items and the electricity was supplied to both of them by a common generator, the Modvat facility shall be available to both the manufacturing units, unless statutorily provided otherwise - It was neither expedient nor desirable unless provided otherwise statutorily to have separate electricity gene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of such unit was registered under Central Excise in the name of M/s Jindal Polymer having different Central Excise Registration number. Jindal Polymer was engaged in the manufacture of Polyester Yarn and Poly Propylene Filament Yarn while the other unit was engaged in the manufacture Polymer Chips. The final product i.e Polymer Chips of Jindal Polymer is the main input of JP. The Department raised a dispute and rejected the contention of the respondents with regard to electricity generated through generation in Unit No. 1. The Department took the view that the respondent was not entitled to Modvat credit on the Furnace Oil used in the generation of the electricity consumed in the second unit. On appeal, the Tribunal held that this is neit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t has placed reliance upon Rule 57-AA particularly Clause(d) which is reproduced below: Rule 57AA. Definitions- For the purpose of this section - a) ................................ b) ................................ c) ................................ d) " 'Inputs' means all goods, except High Speed Diesel oil and Motor Spirit used in or in relation to the manufacturer of the final products whether directly or indirectly and whether contained in the final product or not and includes lubricating oils cleared along with the final products, goods used as paint, or as packing materials or as fuel or for generation of electricity uses for manufacture of final products or for any other purpose within the factory of production." The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ), it has been held that if separate registration is given for polyester yarn manufacturing facility located inside the jute factory, line of production different but factory and manufacturer one, Credit taken on input used in generator in jute factory cannot be denied to yarn unit etc. The learned counsel produced various orders passed by the different Tribunals and they all do support the impugned order of the Tribunal. The learned counsel for the appellant could not refer any statutory regulation or rule to take a different view of the matter. It is logical that if two units are being run at one place, producing two different items and the electricity is supplied to both of them by a common generator, the Modvat facility shall be avail ..... X X X X Extracts X X X X X X X X Extracts X X X X
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