2015 (10) TMI 1637

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..... acture of exempted goods or in providing exempted services. That being the position, when there is no dispute that the appellants have not used DG set exclusively for manufacture of electricity which is in turn used for manufacture of exempted goods, credit could not have been denied. Electricity is in any case exempted but nevertheless the capital goods which are used for producing electricity wh .....

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..... anded with interest and penalty equal to the amount of credit availed has been imposed. It has been denied on the ground that the appellant has sold a portion of the electricity produced by the DG set to another unit. It is the stand of the department that credit can be allowed only when exclusively used by the appellant for their own purpose and because the electricity generated has been sold by .....

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..... h are used for producing electricity which is in turn used for manufacture of duty paid goods in any case is eligible as per law. That being the position, just because appellants have sold a portion of electricity generated to others, credit cannot be denied unless it is shown that electricity generated has been used only in the manufacture of exempted goods. In the result, appeal has to be allowe .....

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