2007 (2) TMI 140

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..... ricity was transferred to other unit - Held that Cenvat credit not disallowed for the reason that after generation, part of excess electricity was diverted
[Order (Oral)]. - Heard Shri Purvish J. Malkan, learned counsel for the appellant. 2. The following substantial question of law is proposed for admission of this appeal. "Whether or not revenue Department can recover proportionate Modvat/C .....

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..... ng consumed by the appellants at their Dahej Plant. If there was no additional load generated, there was no reason to deny the credit on FSNL quantity for the use of generation of electricity utilized within the Dahej unit. The mere technological necessity of rolling out the extra load of electricity to the sister unit will not lead to a conclusion that the FSNL quantity in its entity was not requ .....

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..... use if only Dahej plant's requirements of electricity were to be met. In this view of the matter, the proportionate recovery of the credit or reduction of FSNL quantity, which is found to be imperative requirement for use in the Dahej unit, cannot be upheld." 4. Considering the reasons given that for generation of electricity to start, some Naptha is used. Thereafter, part of the electricity was .....

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