2007 (9) TMI 191

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....er-in-Appeal No. 49/2006- C.E. dated 28-1-2006 by which the assessee has been denied the Cenvat credit in respect of certain inputs/chemicals (other than paints and lubricants) which are used in the production of Steam and in turn power in 16MW power plant. They are also used for purification of water which is a must for production of sugar and molasses. The Commissioner (Appeals) confirmed the OI....

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....s used for treating cooling water in the process of production is an eligible input for grant of credit. He submits that the issue is covered by these two rulings and the various other rulings relied thereon. He specifically draw attention to Sterlite industries (India) Ltd. v. Commissioner - 2005 (191) E.L.T. 401 (Tribunal) wherein credit has been granted to chemicals used in purification of wate....

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.... and electricity as well as sugar and molasses. The contention raised by the Revenue that during the off-season, when sugar is not produced, the electricity manufactured is not being utilized for manufacture of goods is not sustainable, as the electricity is utilized for maintenance of the Plant, stitching of sugar bags and pumping of molasses. Therefore, during these off-seasons, various other ac....