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TMI Blog2018 (2) TMI 564X X X X Extracts X X X X X X X X Extracts X X X X ..... factory - Held that: - the Appellants are not eligible to the credit on Naphtha used for generation of electricity wheeled outside the factory - reliance placed in the case of M/s. Maruti Suzuki Ltd. Versus Commissioner of Central Excise, Delhi-III [2009 (8) TMI 14 - SUPREME COURT], where it was held that appellant are not entitled to CENVAT credit to the extent of the excess electricity cleared a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e are that the Appellant had availed CENVAT credit on Naphtha which is used in their factory for generation of electricity and a part of such electricity so generated had been wheeled out to their sister unit. Alleging that the entire quantity of electricity generated out of Naphtha not used in the factory premises, hence proportionate credit of Naptha amounting ₹ 1,04,371/- used in the gene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of electricity through steam and the same, in turn, is used in their steam turbine which generates electricity and used within the factory of production. A portion of the said electricity so generated wheeled outside the factory. He submits that waste heat generated being inevitable and thus used in generation of electricity in steam turbine plant. Therefore, the CENVAT credit availed on Naph ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o a portion of electricity is wheeled outside the factory, thus, the ld. Commissioner (Appeals) has rightly followed the judgment of the Hon ble Supreme Court in the case of Maruti Suzuki Ltd. in confirming the denial of the credit on the Naphtha used for generation of electricity wheeled outside the factory. He has further submitted that the judgement of the Hon ble Supreme Court in Hindust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry as held by the ld. Commissioner (Appeals) in the impugned order. However, I find force in the contention of the ld. Advocate for the Appellant regarding imposition of penalty. While confirming denial of credit, the Hon ble Supreme Court in Maruti Suzuki Ltd. s case (supra) observed that due to conflicting views on the issue, imposition of penalty is uncalled for. Following the same, penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X
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