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TMI Blog2018 (4) TMI 591X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice and credit of Central Excise duty paid on inputs and input capital goods procured and supplied to BILT Power Limited. 3. Lower authorities were of the view that as per judgment and order of the Hon'ble High Court of Bombay in respondent's case, w.e.f. 01/04/2006, the power generation unit has been demerged from the respondent and was functioning independently as BPL and availment of CENVAT credit by the respondent of the tax paid on input service and duty paid on inputs, capital goods for such power plant is ineligible on the ground that the power plant is not belonging to the respondent. 4. The respondent was issued with a show cause notice for the reversal of such an amount for credit. The show cause notice was contested b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t that only a manufacturer or producer of final products can avail CENVAT credit of the duty-paid on inputs and capital goods and also the service tax paid on GTA. Hence, availment of CENVAT credit by the respondent on capital goods which are used in power plant for generation of electricity after 01/04/2006 is incorrect. He prays for setting aside of the order-in-appeal. 6. Learned Counsel, on the other hand, submits that there is no dispute as to the fact that the power generation plant which is in the name of BPL is installed in the same premises and constitutes same factory as approved by the excise authorities in the ground plan. He submits that the issue is now squarely settled by the Tribunal in the case of Steel Authority of India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t for manufacture of excisable goods and the power so generated is not wheeled out to the grid. 9. Based upon the above factual matrix, I find that the first appellate authority was correct in coming to the conclusion that the respondent is eligible for the availment of CENVAT credit of the service tax paid on GTA service and Central Excise duty paid on the input, and capital goods as there being no dispute that the power plant is within the factory premises and the 'factory premises' defined under Section* 2(a) of the Central Excise Act wherein it is defined as factory includes any premises including precincts thereof, wherein or in any part of which excisable goods other than salt are manufactured. 10. If this definition has to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctory of the appellant. The appellant's case is further strengthened in view of the fact that all the inputs transferred to the power plants by the appellant are fully utilized in or in relation to the manufacture of electricity which in turn is fully used captively by the appellants. As such, we find the impugned order of the lower Authorities is not sustainable and accordingly we set aside the same and allow the appeal with consequential relief, if any." 13. It is to be seen that similar view was expressed by the Tribunal in the case of Dharampur Sugar Mills Ltd (supra), the decision which has been upheld by the apex Court wherein the apex Court, while dismissing the appeal filed by the Revenue recorded the following: "We do not fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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