https://www.taxtmi.com/caselaws?id=49996 Naphtha captively consumed for generating electricity and steam was treated as eligible for excise exemption where those utilities were essential and integrally connected with the manufacture of final products under Chapter 27. The notification's phrase "in or in relation to the manufacture" was applied broadly, so the presence of intermediate products did not break the nexus when the input formed part of the manufacturing chain. Naphtha used for flushing pipelines was also covered because the activity was a necessary preliminary step to make the pipelines fit for moving raw material into the production process. The commentary states that indirect use through essential intermediate processes can satisfy the exemption condition when it is integral to manufacture. en-us Thu, 20 Jan 2000 00:00:00 +0530 Thu, 19 Aug 2010 10:11:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49996 Naphtha captively consumed for generating electricity and steam was treated as eligible for excise exemption where those utilities were essential and integrally connected with the manufacture of final products under Chapter 27. The notification's phrase "in or in relation to the manufacture" was applied broadly, so the presence of intermediate products did not break the nexus when the input formed part of the manufacturing chain. Naphtha used for flushing pipelines was also covered because the activity was a necessary preliminary step to make the pipelines fit for moving raw material into the production process. The commentary states that indirect use through essential intermediate processes can satisfy the exemption condition when it is integral to manufacture. Case-Laws Central Excise Thu, 20 Jan 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49996