2017 (4) TMI 786

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rplus steam is sold out to the adjoining industrial units, it has been held that the respondent-assessee is not required to reverse any amount under Rule 57CC of Central Excise Rules, 1944 read with Rule 6(2) of Cenvat Credit Rules 2001/2002 & 2004. 2.  The brief facts of the case are that the appellant is manufacturer of Carbon Black. They use furnace oil as fuel for generation of steam which is captively used in manufacture of electricity and is further used by the respondent-assessee in production of final products. They have some surplus steam which was sold outside the factory to other adjacent factories through pipelines without payment of duty. It was observed by Revenue that the respondent-assessee is taking Cenvat credit on....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s fuel. This exclusion of fuel under Rule 6 existed till 16th of May, 2005. It was further urged that the extended period of limitation is not available to Revenue, as proper disclosures of sale of surplus steam were made in their annual accounts/books of accounts and it is admitted case of Revenue that they have come to know about sale of steam from the balance-sheet of the respondent-assessee. It was also contended that under the erstwhile Rule 57G respondent-assessee was filing declaration showing the list of inputs and final products being manufactured by them and also filing classification list/declaration under the then Rule 173B where under the category of "other goods" respondent-assessee was showing the generation of steam. Both of....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....leads me to conclude that the Rules have created an exception in respect of inputs used as fuel and neither any Modvat credit is required to be reversed for such inputs used in the manufacture of final products cleared without payment of duty nor such final products are called upon to pay an amount @ 8% of their price. The same view is expressed in the case of National Engineering Ind. Ltd. Versus Commissioner of Central Excise, Jainpur [2002 (102) ECR 808 (Tri)]. In the case of Navsari Oil Products Versus Commissioner of Central Excise, Surat [2003 (107) ECR 22] also the Hon'ble Tribunal has held that the assessee is not liable to reverse the credit taken on furnace oil used for generation of electricity and steam used in the manufacture o....