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TMI Blog2018 (11) TMI 910X X X X Extracts X X X X X X X X Extracts X X X X ..... the CETA, 1985. They are availing CENVAT credit of inputs such as clarifying agent, lubricating oil for sugar machinery, PP bags, Sulphur etc., and input services such as GTA service, manpower supply service, repair and maintenance service etc., used in the manufacture of sugar. The appellant has further said that they have not availed credit of the inputs and input services used in the generation of electricity. Electricity is generated from steam which is generated from burning of Bagasse. Thus no credit is availed on input used in the manufacture of electricity. The only input which is used in the manufacture of electricity is the lubrication oil required for maintenance of TG set. During the impugned period, the appellant has not availe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant having failed to maintain separate account in terms of Rule 6 (2), they are liable to pay an amount equal to 6% of the value of electricity sold outside the factory under Rule 6(3)(i) of CCR. After following the due process, the demand was confirmed. Aggrieved by the said order, the appellant filed appeal before the Commissioner (A) who rejected the appeal of the appellant. 3. Heard both sides and perused the records of the case. 4. Learned counsel for the appellant submitted that the impugned order is not sustainable in law as the same has been passed without properly appreciating the facts and the law. He further referred to Rule 6 of the CCR which contains the conditions and restrictions for availing and utilizing credit by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned counsel relied upon the decision in the case of Gularia Chini Mills Vs. UOI - 2014 (34) STR 175 (All.) - affirmed in 2015 (322) ELT 769 (SC) wherein it was held that Rule 6 is not applicable to electrical energy which is generated from Bagasse emerging as a waste during the crushing of sugarcane. He further submitted that this issue is no more ras integra and has been settled by various decisions of Tribunal, the High Court and the Supreme Court which are mentioned here in below: (i) UOI Vs. DSCL Sugar Ltd. - 2015 (322) ELT 769 (SC). (ii) Balrampur Chini Mills Ltd. Vs. UOI - 2014 (300) ELT 372 (All.) Affirmed in 2015 (322) ELT 769 (SC). (iii) UOI Vs. M/s. Hindustan Zinc Ltd. - 2014-TIOL-55-SC-CX. (iv) Bajaj Auto Ltd. Vs. CCE, A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that only input which is used in the generation of electricity is lubricating oil used in the maintenance of T.G. set but during the impugned period, the appellant has not availed any credit on the lubricating oil. The learned counsel further submitted that the appellant has not availed credit of input services used in the generation of electricity and has availed credit only on input services used in the manufacture of sugar and therefore, they are required to reverse the proportionate credit as held in the following cases: (i) Sharad SSK Ltd. Vs. CCE - 2017 (49) STR 506 (Tri. Mumbai). (ii) Jawahar SSK Ltd. Vs. CCE - 2016 (46) STR 396 (Tri. Mumbai). 5. On the other hand, the learned AR defended the impugned order and submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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