2009 (8) TMI 96 - SCH - Central Excise

Cenvat Credit use of fuel in generation of electricity a part of electricity supplied to its sister units, vendors, joint ventures decision M/s. Maruti Suzuki Ltd. Versus Commissioner of Central Excise, Delhi-III 2009 -TMI - 34348 - SUPREME COURT matter remitted to Adjudicating Authority who will in each case ascertain whether any excess electricity was wheeled out/cleared at a price in favour of joint ventures, vendors, sister companies etc. and, if so, the Adjudicating Authority will calculate and charge duty or reverse credit to that extent alone. However, as stated above, the Department will not impose penalty in that regard for the disputed period(s).

Summary

The Supreme Court allowed civil appeals filed by the Department, remitting matters to the Adjudicating Authority to ascertain excess electricity wheeled out at a price in favor of certain entities. Duty or credit will be calculated and charged accordingly, with no penalty imposed for the disputed period(s).