2000 (7) TMI 136

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... arises for consideration :- (i) "Inputs (chemicals) used in generation of steam is not eligible for Modvat credit for the reason that the said steam is used in the production of power (electricity). (ii) Inputs (chemicals) used in the effluent and water treatment plant is not eligible to Modvat credit on the ground that (a) the said plant has no nexus in the manufacture of the final product .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... cerned, i.e. eligibility of Modvat credit on input which are used to produce final goods which in turn are cleared under bond (under warehousing provisions of Chapter 7 of the Central Excise Rules, 1944), the matter is no longer res integra in view of the decisions cited supra which have been further followed by the Tribunal as noted above. We do not find any merit on the sole ground of Revenue th .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... or the generation of electricity, thereafter the steam emerging from the turbines generating electricity is recaptured and further used, albeit at low pressure, in the manufacturing process leading to the emergence of the final products. This fact requires physical verification by the original authority. Therefore, the matter on this count needs to be remanded to the original authority who is dire .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... pondents. Therefore, now that the facts are established on this account, this ground of Revenue appeal fails. As far as the consideration of the nexus between the treated water emerging out of this effluent treatment plant to the manufacturing process for the final products is concerned, we find great merit in ld. Advocate's submission that this is also being a matter of fact could be verified by .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... s already expressed in the above noted paragraphs and following the ratio thereof, the first two issues are remanded to the original authority for de novo consideration in the light of the observations already noted therein and the 3rd issue as has been rejected by the bench as noted above, we also follow the ratio thereof and reject the Revenue appeal on this issue. Ordered accordingly. - .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X