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TMI Blog2017 (2) TMI 1043X X X X Extracts X X X X X X X X Extracts X X X X ..... udicial) Appellant(s) : Shri Alok Srivastava, Authorised Representative Respondent (s) : Shri Paritosh Gupta, Advocate Per : Dr D.M. Misra, Heard both sides. 2. This is an appeal filed by the Revenue against OIA-87/2012-AHD-III-/KANPAZHAKAN/COMMR-A-/AHD dt 11/04/2012 passed by the Commissioner (Appeals), Central Excise-AHMEDABAD-III 3. The brief facts of the case are that the respondent had availed Cenvat Credit amounting ₹ 47,02,267/- on Furnace Oil during 2006-07 to 2007-08 which were used for generation of electricity for further use in the trial-run production of their CRM project. As some quantity of Furnace Oil was capitalized under fixed assets under the head General Expenses in their books of accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in concluding that use of Furnace Oil in generation of electricity was not for fabrication of fixed structure but used in pre-trial run production of the goods. He has requested to remand the matter to the Adjudicating Authority for reconsideration of the evidences. 6. Ld Advocate, Shri Gupta for the respondent submitted that they have categorically raised the issue of use of electricity on purchasing it from GEB in the fabrication of immovable structures, during investigation as well as before the Adjudicating Authority. Therefore, the Revenues contention that it is raised for the first time before the First Appellant Authority is without any basis. The Ld Advocate supporting the findings of the Ld Commissioner (Appeals) submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. As per the above details the Auditors have raised the captioned objection and concluded hat cost of Furnace Oil along with Cenvat Credit involved thereon has been capitalized by the respondent in their books of account under the head of pre-operative expenses for setting up of fixed immovable structures and used in generation of electricity. In this regard, the respondents have contended that furnace oil was not used in generation of electricity for fabrication and setting up the fixed structure but used for trial run production of the CRM Project, 70 M.T. Reheating Furnace and EAF Project and as per the Standard Accounting policies they have shown Pro-Operative expenditure capitalized in the heads of Fixed Assets. I find that while rais ..... X X X X Extracts X X X X X X X X Extracts X X X X
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