https://www.taxtmi.com/caselaws?id=115501 Chemicals used in demineralising water for captive steam generation qualified for Notification No. 217/86 because they were consumed in an integral manufacturing process connected with paper production. The denial of exemption could not rest on a mere presumption that steam or electricity generated from it might be diverted elsewhere; no concrete evidence of such diversion was shown. Steam remained an intermediate product captively consumed in manufacture, and the generation of electricity from high-pressure steam was treated as part of the same energy-transfer process. On that basis, the exemption could not be refused, and the demand and penalty were unsustainable. en-us Fri, 01 Jul 2005 00:00:00 +0530 Wed, 30 May 2012 14:10:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=115501 Chemicals used in demineralising water for captive steam generation qualified for Notification No. 217/86 because they were consumed in an integral manufacturing process connected with paper production. The denial of exemption could not rest on a mere presumption that steam or electricity generated from it might be diverted elsewhere; no concrete evidence of such diversion was shown. Steam remained an intermediate product captively consumed in manufacture, and the generation of electricity from high-pressure steam was treated as part of the same energy-transfer process. On that basis, the exemption could not be refused, and the demand and penalty were unsustainable. Case-Laws Central Excise Fri, 01 Jul 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=115501