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TMI Blog2017 (4) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... he factory - Held that: - the embargo created in Rule 6 ibid has no application for payment of amount of 6% on the electricity wheeled out from the factory - Since some portion of generated electricity has been sold by the appellant to the grid on payment of consideration, Cenvat credit attributable to the electricity wheeled out from the factory will not be available for the Cenvat benefit - sinc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Excise Tariff Act, 1985. The appellant generates electricity within its factory premises for captive use in the manufacture of the final product. The surplus electricity generated is wheeled out to Chhattisgarh Grid on payment of consideration. The appellant avails Cenvat credit of Central Excise duty paid on inputs and capital goods and service tax on the input services. Since Cenvat credit tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit of duties and service tax paid on the input and input services used in or in relation to manufacture of the dutiable final product. Where the manufacturer is engaged in manufacture of both dutiable and exempted final product, Rule 6 of the Cenvat Credit Rules, 2004 provides the obligation/conditions which a manufacturer has to follow. Since Rule 6 ibid deals with manufacture of dutiable final ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacture of the final product in entirety. Since some portion of generated electricity has been sold by the appellant to the grid on payment of consideration, in my opinion, Cenvat credit attributable to the electricity wheeled out from the factory will not be available for the Cenvat benefit. The ld. Advocate appearing for the appellant fairly concedes that the generated electricity has not be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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