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TMI Blog2023 (5) TMI 1338X X X X Extracts X X X X X X X X Extracts X X X X ..... nd they were subject to regular inspection and audit by the Department. In this view of the matter, the extended period of limitation is not available to the Revenue. Accordingly, demand will survive only for the normal period. Reversal of CENVAT Credit - HELD THAT:- The appellant is not liable for reversal of duty on the power used in the residential township, which is situated closed to the factory of the appellant and it is an industrial township maintained by the appellant, which requires necessary technicians and workmen on short call and as and when required for running the factory. Accordingly, the appellant is not required to reverse the proportionate cenvat credit for common input and input services towards the power used in the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r wheeled out to RSEB or used in the residential colony. 4. In the course of audit by the Department, it appeared to Revenue that the electricity generated is exempted from levy of central excise duty, therefore, power sold to RSEB and power transferred for use of the residential colony falls under the category of exempted goods and hence, the appellant is required to reverse proportionate amount of cenvat credit on common input services like security service, telecommunication service, input services distributed by the ISD office, manpower services, legal service, insurance services, which are only indirectly related to captive power plant. Accordingly, show cause notice dated 26.04.2019 was issued for the period April, 2014 to June, 2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the appellant works round the clock and the same cannot be run efficiently without availability of the competent technicians and workmen. All the municipal services in the colony like lighting, cleaning, water supply, etc. are maintained by the appellant. The residential colony is in the nature of industrial township and the appellant is responsible under law to maintain the same. Ld. Counsel further points out that this Tribunal has repeatedly held in several cases that when an assessee supplies powers from captive power plant to the industrial township required for the industry of the appellant, is attributable to manufacturing activity and no proportionate reversal of cenvat credit is required. Ld. Counsel relied on the ruling of Simbh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taking credit. 11. Being aggrieved, the appellant is before this Tribunal. Ld. Counsel for the appellant urges the same grounds taken before the Court below. 12. It is further urged that the Revenue have mis-conceived the facts and have issued a vague show cause notice in spite of the admitted fact that the assessee has already reversed the proportionate credit for the power wheeled out to the RSEB and supply to the residential colony. Further, admittedly, the amount of cenvat credit disputed by the Revenue, has not been directly used in the captive power plant. It is further urged that the electricity is non-excisable product (nil rated) and not an exempted product. Hence, Rule 6 of CCR is not attracted in the facts of the present case. 13 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... view of the matter, I hold that the extended period of limitation is not available to the Revenue. Accordingly, demand will survive only for the normal period. 16. Secondly, I hold that the appellant is not liable for reversal of duty on the power used in the residential township, which is situated closed to the factory of the appellant and it is an industrial township maintained by the appellant, which requires necessary technicians and workmen on short call and as and when required for running the factory. Accordingly, the appellant is not required to reverse the proportionate cenvat credit for common input and input services towards the power used in the residential colony. 17. Thirdly, I hold that the appellant is liable to reverse the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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