TaxTMI 
TaxTMI 
2002 (2) TMI 998
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....dication officer that Modvat credit in respect of the specified inputs used in the generation of steam was not available prior to 16-3-1995 also is not sustainable because the notification is clarificatory in nature and has retrospective applicability. They have, in this regard cited the case laws of M/s. J.P. Rewa Cement [1997 (95) E.L.T. 429 (T)]; Batliboi & Co. [1997 (89) E.L.T. 696 (T)] and other cases. I have gone through the submissions of the appellants and the argument of the Adj. Officer in support of his finding and find that the appellants have made out a case in their favour. In view of their submissions and the case laws cited by them, it is clear that the appellants are eligible for the Modvat credit on inputs before 15-3-1995....
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....er 16-3-1995 Modvat credit could be taken on the item in terms of the notification issued on 16-3-1995. He submits that the Assistant Commr. has rightly disallowed Modvat credit. He submits that LSHS oil and furnace oil were being used by the respondents herein for generation/manufacture of steam which was totally exempted from payment of duty. Therefore, no credit of specified duty paid on inputs used in the manufacture of steam was admissible u/r 57C of C. Ex. Rules. 4. Shri P.C. Jain, learned Advocate and Shri Rahul Ray, Advocate appear for the respondents. They submit that the issue of admissibility of Modvat credit on use of LSHS and furnace oil is squarely covered by the decision of Larger Bench of this Tribunal in the case of....
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....y were used in the process of manufacture, we hold that the furnace oil is an input and thus is admissible for Modvat credit'. The Bench has relied upon the earlier order of the Tribunal in the case of Indian Oil Corporation Ltd. reported in [1985 (19) E.L.T. 145]. In the case of Collector v. Batliboi & Co. reported in [1997 (89) E.L.T. 696] and Rathi Alloys and Steel Ltd. v. C.C.E., New Delhi reported in [1997 (93) E.L.T. 594], Modvat credit has been held to be admissible on inputs used as fuel. In the Indian Oil Corporation case cited supra, the Tribunal considered interpretation of Notification 352/77 which exempted petroleum products falling under TI-11AA of the Schedule to the erstwhile Central Excise Tariff, produced in specified type....
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....77 and not while interpreting 57A of the Central Excise Rules; however, since the exemptions used are pari materia, those decisions would be applicable in the context of Modvat also and use as fuel is the requirement of both Notification 352/77 and Explanation (C) to Rule 57A. Therefore, an item used as fuel for generation of electricity which in turn is used in the manufacture of final products is indeed an item used as fuel in the manufacture of the final product." They submit that since the issue is squarely covered by this decision of the Larger Bench, therefore, the appeal filed by the Revenue may be rejected. 5. We have heard the submissions of the learned DR as also the submissions made by the Counsels for the respondents ....