2008 (2) TMI 162

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..... [Order per : Shri T. K. Jayaraman, Member (T)]- This appeal has been filed against Order-in-Original Nos. 21/2006-Commr. dated 30.11.2006 04/2007-CE dated 08.05.2007 passed by the Commissioner of Central Excise, Hyderabad - I Commissionerate. 2. The appellants are engaged in the manufacture and clearance of excisable goods namely Sugar, Molasses and Spirit. The issue in this appeal is regarding the availment of Cenvat Credit on the capital goods used for their Co-Generation Plant. According to the department, the Co-Generation Power Plant produces electricity which is not excisable and therefore in terms of the Cenvat Credit Rules, when the capital goods are used exclusively for the manufacture of exempted products the credit is .....

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..... and installing them in the cogeneration plants was informed to the department by their letter dated in January 2005. However the show cause notice was issued after a long period beyond the normal time limit namely on 28.07.2006. Therefore, he said the demand is time barred. Further, he relied on a large number of case laws to show that they are entitled for the Cenvat Credit taken on the capital goods, used for generating electric power. 5. The learned Advocate relied on the following case laws: Cenvat - Capital goods used for generation of electricity - Part of excess electricity so generated sold outside for monetary consideration - Entire Cenvat Credit availed on capital goods used for generation of electricity which is not excisa .....

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..... Commissioner, Central Excise Customs, Nizamabad Sir, Sub: C.Ex.- Initmation of errection of Co-Gen Power Plant within the factory - Reg. Ref: Central Excise Registration No. AABCN 5981 HXM 002 ____________ This is to intimate that we are erecting Co-Gen Power Plant within the factory for use of power generated, for the manufacture of sugar and molasses (By-product). The excess power generated is to be supplied outside to the A.P. Transco. This is for your kind information. Thanking You, Yours faithfully, Chief General Manager Cc: Superintendent, Central Excise Nizamabad Division, Nizamabad Cc: Inspector, Central Excise, Shakarnagar. 7.1. It is .....

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