1999 (2) TMI 162

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....for the Respondent. [Order per : Jyoti Balasundaram, Member (J)]. - The issue involved in this appeal is the eligibility of high speed diesel oil used as fuel for generation of electricity for manufacture of polyester chips, polyester films, etc., to Modvat credit under Rule 57A of the Central Excise Rules, 1944. The Assistant Commissioner of Central Excise had denied credit on this item as it ....

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....in the case of India Cements Ltd. v. C.C.E., Hyderabad reported in 1997 (95) E.L.T. 520. In that case credit was sought to be denied on the ground that HSD oil classifiable under Heading 27.10 was excluded from the coverage of goods eligible to the benefit of credit, at Sl. No.4 of the Table annexed to Notification 8/95. The Tribunal held that there was an apparent contradiction between Notificati....

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....ure of final products or for any other purpose. The Tribunal allowed the appeal of M/s. India Cements. In the present case, there is no dispute that the HSD oil which was used by the appellants before us as fuel for generation of electricity for manufacture of their final products. Hence, the ratio of the above decision is applicable on all fours and following the same, we set aside the impugned o....