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2018 (9) TMI 822 - RAJASTHAN HIGH COURTCENVAT Credit - input/input service used in Captive power plant - captive consumption of power generated - electricity generated partly consumed captively and partly supplied to other plants - Whether the ld. CESTAT was right in law in holding that the assessee was entitled to avail the full credit of Excise Duty/service tax paid on input/input services under in their captive power plant when all the power generated through the captive power plant was not used by them for the manufacture of finished goods but part of the power generated was also supplied/wheeled out to the other plants? Held that:- Revenue placed reliance in the case of Supreme Court in Maruti Suzuki India Limited [2009 (8) TMI 14 - SUPREME COURT] where SC came to the conclusion that if the product namely electricity sold to third party or even sister concern, then it will not be entitled to Cenvat credit - the judgement do not apply to the facts of the present case, and CENVAT credit cannot be denied. Reliance placed in the case of Hindustan Zinc Ltd. vs. CCE Jaipur-II [2017 (4) TMI 841 - CESTAT NEW DELHI], where it was held that the electricity has been used in the manufacture of dutiable final products and also the fact that all units belong to the appellant the denial of credit is not justifiable. The decision which is taken by the Tribunal that the captive power plant of the sister concern, the same is against the fuel and fuel is used for the sister concern which is a part of the company itself. In that view of the matter, we are of the considered opinion that the view taken by the Tribunal is just and proper - credit remains allowed. Appeal dismissed - decided against Revenue.
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