2017 (4) TMI 1512 - AT - Central Excise

CENVAT Credit - power generated transferred and supply to their sister concern - period April, 2011 to July, 2012 - HELD THAT - The identical issue has come up in the assessee s own case for the earlier period M/S. HINDUSTAN ZINC LTD. VERSUS C.C.E. S.T. JAIPUR-II 2017 (4) TMI 841 - CESTAT NEW DELHI where it was observed that input service parts and power transferred to their sister unit is admissible to avail the cenvat credit on input service used in the manufacture of dutiable final product by the appellant as well as by their sister unit. Appeal dismissed - decided against Revenue.

Summary

Issues:
Appeal against order-in-original regarding cenvat credit on power generated and transferred to sister concern.

Analysis:
The appeal was filed by the Revenue against the order-in-original passed by the Commissioner of Central Excise, Jaipur-II. The respondent-assessee was manufacturing Lead, Zinc ores, etc., and availing cenvat credit on common inputs and input services used in the captive power plant. The power generated was used captively, transferred to their sister concern, and excess power was sold to M/s Ajmer Vidyut Vitran Nigam Limited. The dispute revolved around the cenvat credit on the power generated and transferred to the sister concern. The Tribunal referred to a previous case where it was observed that the appellant is eligible to avail the credit on input services used in the generation of electricity transferred to sister units engaged in manufacturing dutiable final products. The Tribunal found no reason to interfere with the impugned order and sustained it. Consequently, the appeal filed by the department was dismissed, and the Cross-objection filed by the appellant was also dismissed.