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TMI Blog2012 (12) TMI 974X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, the Cenvat credit in respect of capital goods and inputs used in the captive power plant located at Renusagar cannot be denied just because the power plant is located at some distance from the factory. Since, admittedly, some quantity of electricity generated is used in the township and is not used in the factory of the appellant company for manufacture of excisable goods, to that extent, the input duty credit would not be admissible in view of judgment of the Apex Court in the case of CCE v. Solaris Chemtech Ltd. [2007 (7) TMI 2 - SUPREME COURT OF INDIA]. However, for determining the quantum of input duty credit, which would be inadmissible on this ground, the matter would have to be remanded to the original Adjudicating Authority. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal dated 8-7-2011, against which this appeal has been filed. 2. Heard both the sides. 3. Shri R.K. Hasija, Advocate, the learned Counsel for the appellant, pleaded that the entire electricity generated by the captive power plant is used in the appellant s factory for manufacture of excisable goods, that merely because the power generation plant is located at a distance about 40-50 kms. from the production unit of the appellant, it would not cease to be a captive power plant, that the power plant is owned by the appellant company and not by a separate entity, that the Apex Court in the case of Vikram Cement v. CCE, Indore reported in 2006 (197) E.L.T. 145 (S.C.) has held that the explosives, lubricating oils and capital goods used in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and, as such, the Cenvat credit has been rightly disallowed by the Commissioner. She in support of this contention has relied upon the judgment of Larger Bench of the Tribunal in the matter of Vikas Industrial Gas v. CCE, Allahabad reported in 2000 (118) E.L.T. 257 (Tribunal - LB). 5. We have considered the submissions from both the sides and perused the records. 6. The point of dispute in this case is as to whether the inputs and capital goods used for generation of power in Renusagar Power Plant, would be eligible for Cenvat credit, even though the power plant is not located within the factory premises and it is located at distance of about 40-50 kms. from the factory. There is no dispute about the fact that though initially the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at credit in respect of explosives used in the mines for blasting purpose to produce lime stone would be admissible if the mine is the captive mine and that utilization of input only within the factory premises is not necessary. In para 4 of this judgment with regard to the admissibility of Cenvat credit in respect of the inputs used for the generation of power or steam for use in the factory, the Apex Court interpreting the provisions of Rule 57B observed as under :- It appears to us on a plain reading of the clause that the phrase within the factory of production means only such generation of electricity or steam which is used within the factory would qualify as an intermediate product. The utilisation of inputs in the generation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the cement factory of the appellant company constitute one integrated unit and it is not disputed that except of small quantity of electricity generated being used in the Renusagar township, the remaining quantity is used in the appellant s factory for production of aluminium. Therefore, the Cenvat credit in respect of capital goods and inputs used in the captive power plant located at Renusagar cannot be denied just because the power plant is located at some distance from the factory. 6.4 We also find that the Apex Court in the case of State of U.P. v. Renusagar Power Company reported in 1988 (4) SCC 59 has held that Renusagar Power Plant had no separate and independent existence apart from and independent of Hindalco (the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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