POWER PLANT INPUT/INPUT CREDIT ADMISSIBILITY, Central Excise

[SURYA KANT GUPTA]

Is there any judgement with regard to availment of CENVAT credit on input/input services used in CAPTIVE POWER PLAN particularly given by HON'BLE SUPRREME COURT

Posts / Replies

[Mangesh Lokre]

May we request you to elaborate the query in details ?

If the CPP is within the Manufacturing Area's Premises and the Power produced is fully consumed within the Manufacturing Process only, then the Cenvat Credit on the Input like FO and the Input Services like AMC is eligible.

 

[CA Rachit Agarwal]

Refere the case of Supreme Court in Maruti Suzuki Ltd, where in the proportionate amount of electricity sold was reversed.

If in case of captive power plant, if the electricity is sold to the grid/outside partly, proportionate cenvat credit on "inputs" to be reversed.