2005 (6) TMI 172

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....he ground that naphtha used in the above manner was not covered by the definition of "input" under Rule 57AA(d) of the C.E. Rules, 1944. Hence the present appeal. 2. After carefully examining the records and hearing both sides, I find that the issue to be settled in this case is as to whether naphtha which was used in the above manner, during the above period would fall within the scope of the definition of "input" under Rule 57AA(d). This definition reads as under : "Input" means all goods, except high-speed diesel oil and motor spirit, commonly known as petrol, used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not and includes accessories of the f....

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....e 57AA(d) would reveal that it is not different from the list of "inputs" mentioned under sub-rule (1) of the erstwhile Rule 57B. It appears from the submissions of both sides that, while the appellants would contend that naphtha was covered by the expression "goods used as fuel", the department would treat it as "goods used for generation of electricity or steam used for manufacture of final products or for any other purpose, within the factory of production". According to the learned Counsel for the appellants, "goods used for generation of electricity……..within the factory of production" do not include "goods used as fuel". Accordingly to the learned SDR, the entire Modvat Scheme has to be borne in mind while interpreting the above p....

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....lectricity which, in turn, was disposed of otherwise than in the above manner. 4. After careful consideration of the submissions, I am convinced that there is parity between the definition of "input" under Rule 57AA(d) and its definition under the erstwhile Rule 57B(1). It is obvious that all those inputs which were covered under the erstwhile Rule 57B(1) continued as such under the new Rule [57AA(d)]. According to the appellants, naphtha is covered by "goods used as fuel" and hence whether it was used for generation of electricity or not is immaterial. On the other hand, the Revenue's contention is that naphtha is specifically covered by "goods used for generation of electricity or steam used for manufacture of final products or for any....