2014 (10) TMI 369 - AT - Central Excise

CENVAT Credit - Whether the part of input service credit related to inward transportation of LDO/Coal for generating power in the captive power plant is admissible or not, when entire electricity so generated is not used within the factory of manufacture of the final product but a portion of such electricity is wheeled out/transferred to sister units and others - Held that - Commissioner failed to quantify the quantum of power not used within the factory. On 10.7.12 similar such case was before the Bench where it was noticed that vague order was passed by the authority on the self same issue in the case of same appellant. If this is the fate of the appellate order today, appeal is bound to be allowed - Decided in favour of assessee.

Summary

The appellate tribunal in CESTAT New Delhi reviewed a case regarding admissibility of input service credit related to inward transportation of LDO/Coal for power generation. The tribunal found that the authority failed to quantify the power not used within the factory, leading to a vague order. The appeal was allowed.