9911796707
TMI Blog2018 (6) TMI 1537X X X X Extracts X X X X X X X X Extracts X X X X ..... - for the Respondent. ORDER Per. Anil Choudhary :- Brief facts of the case are that the appellant is engaged in the manufacture of sponge iron falling under Chapter 72 of the Central 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 Gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Central Excise Act, 1944 were imposed on the appellant. Hence the present appeal is before the Tribunal. 2. Heard both the sides and examined the case record. 3. Cenvat Credit Scheme permits a manufacturer to take credit 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 manu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... application for payment of amount of 6% on the electricity wheeled out from the factory. However, it is an admitted fact that the electricity generated by using the input and input services were not captively consumed for manufacture of the final product in entirety. Since some portion of generated electricity has been sold by the appellant to the grid on receipt of consideration, in my opinion, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the quantum of electricity wheeled out from the factory. The appellant should reverse proportionate Cenvat credit of the electricity not used within the factory, after adjusting amount already reversed or deposited, for the intended purpose. Penalties are set aside. The appeal is allowed in above terms.
(Operative part of the order pronounced in the open court.) X X X X Extracts X X X X X X X X Extracts X X X X
|
