2017 (7) TMI 517

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....lleging that as per the definition of input under Rule 2(f) of Cenvat Credit Rules 2001, fuel is an input only when used in generation of electricity and steam, used for manufacture of final products within the factory of production, and that the credit taken on furnace oil used in the generation of steam not used within the factory but cleared to M/s. Futura Polymers is incorrect, three show cause notices were issued covering the periods from April 2002 to August 2004 proposing to demand the duty amounts of Rs. 13,80,196/-, Rs. 15,53,552/- and Rs. 14,40,606/-. After due process of law the Ld. Lower authority passed the impugned orders confirming the duty amounts demanded. He also imposed a penalty of Rs. 10,00,000/- under Rule 13 of Cenvat....

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....as a fuel. According to the assessee, so long as there is no restriction that the manufacture of final product should be within the factory of production, they can avail Modvat credit. 8. The factual matrix indicates that the assessee used furnace oil in the generation of steam. A part of the steam was transferred to a unit situated outside their factory. Though there is no dispute about the inputs, the fact remains that the steam generated was not used within the factory of production. It is not the case of the assessee that M/s. Futura Industries Limited is a 100% export oriented unit. Rule 57C allows credit of duty in respect of export oriented undertakings. When there is a specific entry in a rule and the said entry pre-supposes that f....