2017 (5) TMI 178

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....ssioner (AR) for the respondent ORDER The issue for determination in this appeal filed by M/s Bharat Chemicals against order-in-appeal no.BR/77-78/2012 dated 4^th September 2012 is the admissibility of CENVAT credit of Rs. 1,33,446/- availed on furnace oil procured and delivered to the factory of manufacture but transferred to job worker to produce and supply 'steam' required in the factory ....

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.... phrase "within the factory of production" means only such generation of electricity scheme which is used within the factory would qualify as an intermediate product. The utilisation of inputs in the generation of steam or electricity not being qualified by the phrase within the factory of production could be used outside the factory. Therefore, whatever goes into the generation of electricity is ....

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....ld that '16. In our earlier discussion, we have referred to two considerations as irrelevant, namely, use of input in the manufacturing process, be it direct or indirect as also absence of the input in the final product on account of the use of the expression "used in or in relation to the manufacture of final product". Similarly, we are of the view that consideration such as input being used a....

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.... expression "used in or in relation to the manufacture" have many shades and would cover various situations based on the purpose for which the input is used. However, the specified input would become eligible for credit only when used in or in relation to the manufacture of final product. Hydrogen gas used in the manufacture of sodium cyanide is an eligible input, since it has a significant role t....