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TMI Blog2019 (9) TMI 1520X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Hon ble Supreme Court, in the case of Maruti Suzuki is not applicable to the facts of the present case. In the case of COMMISSIONER OF CENTRAL GOODS AND SERVICE TAX, JAIPUR VERSUS SHREE CEMENT LIMITED [ 2018 (9) TMI 822 - RAJASTHAN HIGH COURT] , the Hon ble High Court of Rajasthan, after elaborate discussions, have distinguished the case of Maruti Suzuki case and held that input, input services used in captive power plant for generation of electricity and the excess electricity cleared by the appellant in favour of their sister units, without there being any sale in view of captive arrangement, i.e. electricity generated in one unit being consumed in the other unit of the same company in addition to its being consumed in the same unit also, cenvat credit on inputs and input services is eligible in terms of Rule 2(k) and 2(l) of the Cenvat Credit Rules, 2004. The case of CCE, Jaipur Vs. Shree Cement Ltd. is squarely applicable to the present case. Accordingly, the credit of duty/taxes paid on inputs/input services used in the generation of electricity consumed at the Koraput Plant, is eligible - appeal allowed - decided in favor of appellant. - Excise Appeal Nos.116 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is used in both the manufacturing units i.e. at the Smelter Plant, Angul and the M R Complex, Damanjodi, for manufacture of Aluminium Metal and Alumina respectively. 6. It is pertinent to state that a part of the electricity generated in the CPP is also supplied/consumed in the township, schools and the hospital. For such electricity, the appellant does not avail any input and input service credit, which fact has been accepted by the department. 7. The Central Excise Department raised dispute by issuing show-cause-notices, seeking denial of input and input service credit, used in the generation of electricity, which was supplied to the appellant s Damanjodi unit, for consumption in manufacture of Alumina. According to the department, since the electricity is supplied to the sister unit at Damanjodi, which is having separate registration under Central Excise, the input and input service, used for generation of such electricity, are not eligible for cenvat credit. In other words, the electricity generated in the CPP and used in the Smelter Plant, Angul for manufacture of Aluminium Metal, is eligible for credit, and not for the electricity which is wheeled out/supplied to the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng units for manufacture of excisable goods i.e. Alumina and Aluminium. Therefore, there is no justification for the department to deny the cenvat credit in respect of the electricity transferred and used in the Alumina plant at Damanjodi. 11. The learned Advocate further submits that the processes, starting with raising of bauxite ore, manufacture of Alumina and Aluminium metal, and generation of electricity in the CPP are integrated, inseparable and interlinked processes, which was conceived under one feasibility report, and the industrial licence was accordingly granted by the Govt. of India. For denying cenvat credit in respect of the electricity supplied to Damanjodi unit, the learned Commissioner relied upon the decision of the Hon ble Supreme Court in the case of Maruti Suzuki Ltd. Vs. CCE, Delhi III (supra). The learned Advocate further submits that the said decision is not applicable to the facts of the present case, in as much as, in that case the electricity generated, was consumed for manufacture of excisable goods. The excess electricity was cleared by the assessee to its joint ventures/vendors for a price and also cleared in favour of the grid for distribution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Revenue submits that the Alumina Plant at Damanjodi is separately registered under the Central Excise and situated more than 400 km away from the CPP and, therefore, the credit in respect of the electricity wheeled out to Damanjodi Plant is not admissible. The learned AR placed reliance on the decision of the Hon ble Gujarat High Court in the case of Sintex Industries Ltd. Vs. CCE = 2013 (287) ELT -261 (Guj), wherein it was held that two units situated within the common boundary wall owned by the assessee, or a single legal entity, holding two separate registrations Assessee was entitled to credit on eligible inputs utilized for generation of electricity to the extent to which it was used to produce electricity within its factory registered for that purpose but not to the extent it has supplied to the factory registered as different unit. 15. In reply to the above contention of the Revenue, the learned Advocate for the appellant submits that the above case of Sintex Industries (supra) is distinguishable from the facts of the present case of the appellant, in as much as, electricity is not produced/generated within the factory i.e, the Smelter plant, as the CPP is located at a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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