1997 (4) TMI 241

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....t. Shri K.M. Mondal, SDR, for the Respondent. [Order per : Gowri Shankar, Member (T)]. -  The issue for decision in this appeal is whether the assessee is entitled to Modvat credit of the duty paid on fuel oil and light diesel oil used to generate steam which is used in or in relation to the manufacture of pigments. 2. The representative of the appellant explains that steam w....

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...., potassium bicarbonate etc. to various processes, if necessary by using other inputs and continued till the finished products pigments are obtained. For a product to be considered as an intermediate product it has to arise in the course of manufacture of the finished products that is to say, it must come into existence in the course of, or as a result of the various reactions or transformations t....

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....es that credit would be allowed in respect of inputs which are used for generation of electricity or steam used for the manufacture of final product or for any other purpose of the production factory. The amendment, he says, makes manifest the position that prior to such amendment, credit was not available on inputs used for this purpose; if it were there would be no need for the amendment to be i....

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....pressly made in order to metal to be cast would be in the nature of intermediate products, and that, notwithstanding the fact that they were exempted from duty, credit could be taken of the duty paid on chemicals used in the manufacture. 6. As far as the appellant is concerned, steam is thus a final product. It may perhaps be an input in the sense it is used in the manufacture of final pro....