https://www.taxtmi.com/caselaws?id=86573 Modvat credit was admissible on furnace oil, low sulphur heavy stock and light diesel oil used as fuel to generate steam for captive consumption in manufacture of the final products. The fact that steam was an intermediate product and exempt did not defeat credit, because the inputs were used in the manufacturing stream and Rule 57D protected credit in such circumstances. The penalty imposed under the Central Excise Rules also failed, as it rested entirely on the unsustainable denial of credit and no independent basis remained to sustain it. en-us Sun, 04 Feb 1996 00:00:00 +0530 Thu, 25 Aug 2011 16:35:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=86573 Modvat credit was admissible on furnace oil, low sulphur heavy stock and light diesel oil used as fuel to generate steam for captive consumption in manufacture of the final products. The fact that steam was an intermediate product and exempt did not defeat credit, because the inputs were used in the manufacturing stream and Rule 57D protected credit in such circumstances. The penalty imposed under the Central Excise Rules also failed, as it rested entirely on the unsustainable denial of credit and no independent basis remained to sustain it. Case-Laws Central Excise Sun, 04 Feb 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=86573