Anand,

The 8-pin 12F683 has HWPM and only costs slightly more than the 12F629 or 12F675. I posted a simple example of turning it on/off using ~120kHz with 1ms bursts at 10ms intervals in another thread recently. Here it is again...
Code:
DEFINE OSC 8
@ DEVICE PIC12F683, INTRC_OSC_NOCLKOUT, MCLR_OFF

TRISIO.2 = 0				'GPIO.2=Output
PR2 = 17			        'PWM Period   117.7kHz
CCPR1L = 8				'PWM Duty-Cycle  
T2CON = %00000100    			'Timer2=ON, 1:1 prescale
OSCCON = %01110001                      'INT HF OSC 8MHz
WHILE OSCCON.3>0: WEND                  'OSC startup timeout
WHILE OSCCON.2=0: WEND                  'INT HF OSC stable
WHILE OSCCON.2>0 
  CCP1CON = %00001100 'PWM ON
  PauseUS 1000        'generate 1ms burst 
  CCP1CON = 0         'PWM OFF
  Low GPIO.2
  Pause 10            'pause 10ms
WEND
The disadvantage of using XOUT is that it cannot send microdim/microbright and cannot send the extended commands X-10 introduced 6-7 years ago.