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TMI Blog2014 (3) TMI 373X X X X Extracts X X X X X X X X Extracts X X X X ..... entitled to CENVAT credit to the extent of the excess electricity cleared at the contractual rates in favour of joint ventures, vendors etc., which is sold at a price - Following decision of M/s. Maruti Suzuki Ltd. Versus Commissioner of Central Excise, Delhi-III [2009 (8) TMI 14 - SUPREME COURT] and DHAMPUR SUGAR MILLS LTD. Versus COMMISSIONER OF C. EX., MEERUT [2001 (1) TMI 129 - CEGAT, COURT NO. IV, NEW DELHI] - penalty set aside - Decided against Revenue. - E/2384/2004-Mum and Cross-Objection No. E/CO/500/2004-Mum - Final Order Nos. A/394-395/2013-WZB/C-II(EB) - Dated:- 10-4-2013 - Shri Ashok Jindal and P.K. Jain, JJ. Shri B.S. Meena, Additional Commissioner (AR), for the Appellant. Shri Bharat Raichandani, Advocate, for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... final product of the respondent company. But disallowed the credit availed to the extent of electricity supply to residential colony, club and hospital along with interest and also imposed equivalent amount of penalty under Section 11AC of the Central Excise Act, 1944. The said order was reviewed and challenged that the impugned order is not legal, proper and correct for the following reasons : 4. Upon examination of the said order dated 30-5-2003, the Board is satisfied that the said order is not legal, proper and correct for the following reasons :- (a) All the final products declared in Modvat declaration filed under Rule 57G of the Central Excise Rules, 1944, relate to Rayon plant; (b) The declaration does not mention use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cals. In case of M/s. Vikas Industrial Gas reported in 2000 (118) E.L.T. 257 (Tribunal-LB), the Hon ble Tribunal has considered this argument as not relevant. Therefore, the following points were raised for determination before this Tribunal are as under : 5. The Board, therefore under the provisions of Section 35E(1) of the Act, directs the Commissioner, Central Excise, Thane-1, to apply to the CESTAT for correct determination of the following points arising out of the said order. (a) Whether after taking into consideration, the facts and circumstances as stated above, read with the show cause notices, the said order of the Commissioner, Central Excise, Thane-I is legal and proper? (b) Whether by an order passed under Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Excise v. Solaris Chemtech Limited reported in 2007 (214) E.L.T. 481 (S.C.) wherein the Hon ble Apex Court held that input used for generation of electricity will qualify for MODVAT credit only if they are used in or in relation to the manufacture of the final product. Therefore he contended that impugned order is to be set aside. 6. On the other hand Shri Bharat Raichandani the ld. Counsel for the respondents strongly objected to the contention of the ld. AR and submitted that initially respondents were granted to registration one for their rayon plant and another for their chemical plant but later on single registration were granted for both the units as a common factory. Therefore, he submitted that the same issue was dealt with by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctured, or wherein or in any part of which any manufacturing process connected with the production of these goods is being carried on or is ordinarily carried on; The said issue came up before this Tribunal in the case of Dhampur Sugar Mills Ltd. (supra) wherein the facts of the case were that the appellant were having their three units for manufacturing a different excisable goods, the goods manufactured in one plant is used in another plant for manufacturing of another excisable goods. The department is disallowed the benefit of the Notification No. 67/95 on the ground that all the three divisions have separate registration. Therefore it is established that there are three plants in the same factory boundary. Therefore they are not enti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .) have no relevance to the facts of this case as in that case electricity was supplied to the residential colony of the factory s workers families, schools etc. In this case we find that the electricity supplied to the chemical plant which manufactured Caustic Soda, the excisable goods which in turn used by the rayon plant as intermediate product for manufacturing the finished goods on which the appellant has paid the excise duty. Therefore, we find that facts of this case are similar to the facts of the case of Dhampur Sugar Mills Ltd. (supra) and as per the observations of the Hon ble Apex Court, we have no hesitation to hold that two units are consist of one factory. Further, we find that single registration was granted for both the un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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