TaxTMI 
TaxTMI 
2007 (12) TMI 69
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....benefit of Notification No.67/95-C.E.,dt. 16-3-1995, for manufacture of electricity, a part of which was used for dutiable and also exempted goods are not entitled to exemption under the said notification in respect of that part of fuel which has gone into the manufacture of exempted final product. 3. As per the facts on record, the appellants are manufacturing, inter alia Gas Turbine Fuel (GTF), which is being used as fuel by them in their captive power plant for generation of electricity. The electricity so generated is being used in relation to the manufacture of dutiable final product, cleared on payment of duty as well as in the manufacture of exempted good and also for some non- excisable activities. Inasmuch as the said fuel was bei....
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....edit was not to be denied to them on the ground of electricity having been used in the manufacture of exempted final products, in terms of the Larger Bench decision in the case of M/s. Gujarat Narmada Valley Fertilizers Co. Ltd. v. CCE, Vadodara - [2007 (208) E.L.T. 342 (Tri. LB)]. It has been held in the said case that the inputs used as fuel in the manufacture of electricity, which in turn is used in the manufacture of exempted final product are eligible modvatable inputs and the credit cannot be denied in respect of the same. As such we find that the duty liable to be paid on the fuel was available as a credit to the appellant. As such the entire situation was revenue neutral, the confirmation of demand against them was not justified. 6....
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....enerated which is consumed by residential colony of factory worker families, schools etc., will not be eligible inputs for the purposes of Modvat credit. As such that part of the fuel, which has been used in the manufacture of electricity, which has been further used for non-manufacturing activities, is required to discharge duty liability inasmuch as duty required to be paid on the same will not be availble as credit to the appellant. 8. Having held that the duty is required to be confirmed only in respect of that part of the fuel used for manufacturing of electricity, which stands used for non-manufacturing activities, we remand the matter to Commissioner for quantification of the same. In as far as, we have allowed the appellant's appe....