2005 (7) TMI 389

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....ocate, for the Appellant. Shri A.K. Kansal, DR, for the Respondent. [Order per : S.S. Sekhon, Member (T)]. -  Heard both sides and considered. 2. (a) Assessee has been denied exemption on chemicals manufactured and captively consumed in the demineralization of water which is thereafter converted into steam which is used partly to generate electricity and partly for manufactur....

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....ation of water, the quality of ultimate production of goods would suffer and would be commercially in expedient. In this case, however, the steam generated is used for further generation of electricity which the party might be using for running the plant/some other purpose..." Thus the original authority has denied the benefit on a presumption on fear that electricity is used for some other pur....

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....ds the fact that steam though exempt is not the final product derived, which is paper and that steam is getting captively consumed. 5. The plea of the appellant that steam generated at high pressures leads the treatment to generate electricity and is thereafter reduces it super heat, and pressure; it is thereafter used for paper making activity has been ignored by the lower authority. This....