2003 (2) TMI 260

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.... Respondent. [Order (Oral)]. - Issue relates to Modvat credit on capital goods i.e. radiant coil. It was the contention of the party that radiant coil is part and parcel of Thermal Fluid System and in view of the specific entry under Rule 57Q, Modvat credit as such cannot be denied. He said that the Department has denied Modvat credit on the ground that the heat generated out of the Thermal ....

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....I am not convinced with the argument advanced on behalf of the party that the wordings "for any other purpose" denote electricity generated can be used not only in the factory of production but for other purposes and elsewhere also. In the context, the wording "for the purpose" was used cannot be enlarged or expanded to include any other purpose outside the factory. It is not in dispute that D.G. ....

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.... Set to the extent power has been utilized in the factory of the manufacturer. Proportionate Modvat is admissible. By interpreting the provisions of Rule 57R(2) referred to above, I hold that credit of specific duty shall be allowed in respect of capital goods used for generation of electricity used within the factory of production of manufacture of final products and not elsewhere. Proportionate ....