2017 (8) TMI 1113

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....se and Service Tax Appellate Tribunal ("CESTAT") dated 28th August 2014 has been challenged. 2. The Respondent is engaged in manufacturing of pharmaceutical products. A boiler was installed by the Respondent in the main unit for production of steam. The main unit was using Furnace Oil as fuel for production of steam in the boiler. The steam so produced is consumed captively by the main unit. The steam was also supplied by the Respondent to their adjoining sister concern, namely, M/s. Alkem Laboratories through pipelines. The main unit was taking CENVAT credit of duty on the entire quantity of furnace oil which is used as fuel for production of steam. The Respondent had been issued a show cause notice by the Appellant which had alleged that....

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.... payment of duty then the credit cannot be denied to the Appellant group of companies by simply on the grounds that procedures prescribed under Rule 4 of the CENVAT Credit Rules, 2004 are not followed as there is no allegation of diversion of inputs / steam for a consideration or sale." CESTAT in view of the observations made in paragraph 5 has remanded the Appeal to the adjudicating authority for necessary verification. 3. The Appellant has challenged the impugned order of CESTAT on the questions of law which are set out in paragraph 4 of the Appeal and reads thus:- "Whether the CESTAT is right in law in holding that demand of amount for nonreversal of proportionate CENVAT Credit taken on inputs viz"furnace Oil" for generation of Steam ....