2006 (1) TMI 395

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....espondent. [Order per : S.L. Peeran, Member (J)]. - This appeal arises from Order-in-Original No. 4/05, dated 22-2-2005 passed by Commissioner of Central Excise Tirupathi confirming demands by denying Modvat credit in respect of capital goods used for generation of electricity. The reason for denial is that part of the excess electricity so generated is sold to AP Transco for monetary considera....

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.... Gujarat Narmada Fertilizers Ltd., [2006 (193) E.L.T. 136]. Learned Counsel also contended that the demands are barred by time as the period pertain to 1-4-2000 to 31-3-2001 and the show cause notice has been issued on 6-7-2004. He contended that there is no suppression of facts and all the details were within the knowledge of the department. 3. Learned SDR contested the matter and contended....

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....not excisable it by itself cannot be a ground to deny the benefit of Modvat credit. The Tribunal in the case of CCE v. Gujarat Narmada Fertilizers has also decided the matter in favour of the assessee which has upheld the Commissioner's order and dismissed the Revenue's appeal. The Tribunal held that credit is required to be extended to Low Sulphur Heavy Stock used as heat/fuel in the manufacture ....