TaxTMI 
TaxTMI 
2000 (7) TMI 136
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....se are three Revenue appeals in which the following three questions arises for consideration :- (i) "Inputs (chemicals) used in generation of steam is not eligible for Modvat credit for the reason that the said steam is used in the production of power (electricity). (ii) Inputs (chemicals) used in the effluent and water treatment plant is not eligible to Modvat credit on the ground tha....
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....ns and records of the case and we find that as far as the third issue is concerned, i.e. eligibility of Modvat credit on input which are used to produce final goods which in turn are cleared under bond (under warehousing provisions of Chapter 7 of the Central Excise Rules, 1944), the matter is no longer res integra in view of the decisions cited supra which have been further followed by the Tribun....
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....Ld. Advocate on the other hand, has submitted that even where steam is used for the generation of electricity, thereafter the steam emerging from the turbines generating electricity is recaptured and further used, albeit at low pressure, in the manufacturing process leading to the emergence of the final products. This fact requires physical verification by the original authority. Therefore, the ma....
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....ate that the said plants are within the registered factory premises of the respondents. Therefore, now that the facts are established on this account, this ground of Revenue appeal fails. As far as the consideration of the nexus between the treated water emerging out of this effluent treatment plant to the manufacturing process for the final products is concerned, we find great merit in ld. Advoca....