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TMI Blog2009 (1) TMI 681X X X X Extracts X X X X X X X X Extracts X X X X ..... rical Ltd. The Department was of the view that since the electricity generated by the DG set is not being exclusively used in the factory of the appellant for manufacture of finished products, and a part of the electricity generated is being sold outside, they are not eligible for Cenvat credit. On this ground, after issue of show cause notice, the Asst. Commissioner vide Order-in-Original dated 86/CE/05 dated 7-12-05 confirmed the Cenvat credit demand of Rs. 3,37,015/- along with interest and imposed penalty of equal amount under Section 11AC of Central Excise Act read with Rule 13 of Cenvat Credit Rules, 2002. On appeal against this order, the C.C.E. (Appeals) vide the impugned order dated 15-11-06 has upheld A.C. s order, against which t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he learned Sr. DR defended the impugned order, pleading that the Tribunal s judgment in the case of CCE v. Jindal Steel Power Limited, reported in 2003 (158) E.L.T. 178 relied upon by the appellant is not applicable to the facts of the present case, that from the provisions of Rule 57AD(3) of Central Excise Rules/Rule 6(4) of Cenvat Credit Rules, 2001-02, it is clear that capital goods Cenvat credit is admissible in respect of only those capital goods which are exclusively used in production of dutiable goods, that is in this case, the cost of generating electricity is being shared by M/s. India Nippon Electrical Ltd. by an agreement of the appellant with them, that the Tribunal s judgment in the case of Nizam Deccan Sugars Ltd. (supra) r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of excise leviable thereon under any notification where exemption is granted based upon the value or quantity of clearances made in a financial year). The impugned order itself accepts that major portion of electricity generated is being used in the factory and only a portion of the electricity generated out of the said capital goods is being sold outside to any adjacent Unit. From the language of Rule 57AD(3) of erstwhile Central Excise Rules, 1944/Rule 6(4) of the Cenvat Credit Rules, 2001/02 it is clear that capital goods Cenvat credit is not available only when the capital goods are used exclusively for manufacture of exempted goods. The judgment of Hon ble Supreme Court in the case of CCE v. Solaris Chemtech Ltd. (supra) relied upon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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