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TMI Blog2006 (10) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... per M.V. Ravindran: This appeal is directed against order in appeal dated 19th April 2004 that set aside the order in original vide which duty was confirmed and penalty was also imposed. 2. The relevant fact that arise for consideration are the respondents availed modvat credit of RFO, LDO and Furnace Oil for the manufacture of goods. The respondent was manufacturing duty paid as well as e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order in appeal has held as under: "It is observed that in the instant case RFO, LDO and furnace oil are being used by the appellants as fuel. Sub Rule (2) of Rule 57AD and Rule 6 (2) of Cenvat Credit Rules, 2001, specifically exclude inputs intended to be used as fuel in the manufacture of dutiable as well as exempted goods, and appellant are not liable to reverse credit taken on RFO, LDO and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... furnace oil as fuel in their factory. A part of the wire rods were cleared without payment of duty in terms of the provisions o Rule 57F (4). The other part was cleared on payment of duty. The question was whether the appellants were required to reverse modvat credit/pay duty proportionate to the furnace oil used in the manufacture of wire rods cleared without payment of duty. After noting that u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m would also be taken in the term "for any other purpose within the factory of production". We, therefore, hold that for the period after 18.5.1995 the assessee is not liable to reverse credit taken on furnace oil. The order impugned is modified to the above extend and the appeal stands allowed as above." The ratio, as has been laid down by the Division Bench squarely covers issue in the case be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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