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TMI Blog2016 (2) TMI 863X X X X Extracts X X X X X X X X Extracts X X X X ..... - CESTAT, BANGALORE ) held that when the credit attributable to inputs or input services used in or in relation to manufactured of exempted goods is reversed the same should be considered as sufficient compliance of the provisions of Rule 6 (4). The Hon'ble Supreme Court in the case of Maruti Suzuki Ltd. vs. CCE, Delhi - III (2009 (8) TMI 14 - SUPREME COURT) held that the Cenvat credit could not b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the manufacture of Sponge Iron, MS Ingots, Billets liable to Central Excise duty. They are also generating electricity for captive use. Some portion of electricity was cleared to other parties during the period 2002-2003 to 2004-2005. Proceedings were initiated against them to recover 8%/10% of value of such electricity cleared to outside parties in terms of Rule 6 (3) (b) of Cenvat Credit R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... maintain separate accounts for the inputs used for generation of electricity that was sold outside, they were liable to pay 8%/10% of such electricity period. 3. Learned Consultant appearing on behalf of respondent submitted that they have calculated and debited the Cenvat credit attributable to the electricity cleared outside. This fact has been recorded by the lower authorities clearly. Even ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red outside in terms of Rule 6 of Cenvat Credit Rules. We find, admittedly, the respondent have calculated and debited the credits attributable to such electricity cleared outside even before the issue of notice. The issue relating to proportionate reversal of credit in such situation has been a subject matter of many decisions by the Tribunal and the Courts. The Tribunal in the case of Standards ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Department's appeal against the impugned order is without merits. However, we may mention here that the reasoning followed in the impugned order to the effect that electricity is a non-excisable commodity is not sustainable in view of the Hon'ble Apex Court decision and Tribunal decision, as above. However the final outcome of the impugned order cannot be faulted. As such, the appeal filed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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