2012 (6) TMI 694

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....This matter has been remanded to the Tribunal by the Hon ble High Court of Madras with the following observation:-   11. The learned counsel for the assessee attempted to justify the order passed by CESTAT on a different ground. According to the learned counsel, naphtha was used for manufacture of steam, which in turn was used for generation of electricity and the electricity was supplied ....

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.... Court in Maruti Suzuki (cited supra) very clearly stated that in case electricity was not used wholly in the factory of production, the question of availing modvat credit does not arise and it can be availed only proportionately. Therefore, applicability of Rule 57C(1) (ii) was not considered by CESTAT. We are therefore not in a position to consider the contention raised by the assessee in the pr....

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....team, which in turn was used for generation of electricity and such portion of electricity which was supplied to M/s.Futura Polymers Limited, which is claimed to be a 100% EOU.   4. Rule 57C(1) states that no credit of duty shall be allowed on such quantity of inputs which is used in the manufacture of final products which are exempt from duty or are chargeable to nil duty. However, one of....