2014 (11) TMI 995 - HC - Central Excise

Denial of CENVAT Credit - Whether the Tribunal is correct in holding that credit has to be allowed on the entire fuel if the steam generated using it is used within the factory for any purpose, including manufacture of electricity irrespective of its (electricity) use - Held that - issue raised in this appeal has been answered against the assessee by a decision of the Supreme Court in Maruti Suzuki Limited v. Commissioner of Central Excise, (2009 (8) TMI 14 - SUPREME COURT), except with regard to the levy of penalty, which the Supreme Court held is not leviable. - Decided partly in favour of Revenue.

Summary

The High Court of Madras allowed the Department's appeal against Final Order Nos. 213 and 214 of 2006 from the Customs, Excise, and Service Tax Appellate Tribunal. The appeal raised the question of whether credit should be allowed on fuel if steam generated using it is used within the factory. The court partly allowed the appeal based on a Supreme Court decision in Maruti Suzuki Limited v. Commissioner of Central Excise, setting aside the Tribunal's order and ruling in favor of the Department.