TMI Blog2010 (12) TMI 727X X X X Extracts X X X X X X X X Extracts X X X X ..... co-generation power plant - If that be so, the credit availed by the appellants on the said co-generation power plant and subsequent removal of the same ‘as such’ cannot be faulted with Credit on the parts of the power plant for assembling of power plant for generation of electricity - Tribunal in the case of Grasim Industries Ltd. has clearly laid down that Cenvat Credit cannot be denied on the items which were used for assembling captive power generation plant and the power plant satisfied the criteria for the definition of ‘capital goods’ - When the law is settled on the issue, there is no justification to deny the credit on the ground that it is availed after a long time - Appeal is allowed - E/107/2009 - 7/2011 - Dated:- 9-12-2010 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellants contested the show-cause notice on various grounds including the point of limitation. Adjudicating Authority after considering the submissions made and following the principles of natural justice, did not agree with the contentions of the assessee, held against the assessee and passed the following order :- ORDER 1. I do hereby determine that M/s. Saritha Sugars Ltd., Prabhagiripatnam, Nellore District has to pay Rs. 87,37,452/- (Rupees Eighty Seven Lakhs Thirty Seven Thousand Four Hundred And Fifty Two) only with interest on the said amount, under Section 11A. Section 11AB and Section 38A of the Central Excise Act, 1944 read with Rule 14 of Cenvat Credit Rule, 2004. 2. I declare that the reversal of credit made (while clea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion that the denial of the Cenvat Credit is only on the ground that the appellants intended to use these capital goods for production of electricity, which is a non-dutiable product and hence credit cannot be availed. It is his submission that Board s Circular dt. 3-4-2000 clearly indicate that in case of capital goods, receipt of the capital goods is sufficient to avail the credit. He would submit that all the conditions required for availment of Cenvat Credit as per the Cenvat Credit Rules were to be used for co-generation electricity plant. He would submit that the following decisions clearly laid down the law that credit can be availed on captive power plant. (a) Sudalagunta Sugars Ltd. v. CCE [2006 (199) E.L.T. 760 (Tri.-Bang.)] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the capital goods which were procured and purchased by the appellants were for captive co-generation power plant. It is also undisputed that the said capital goods were duty paid when they were received in the factory premises of the appellants. It is also undisputed that the Range Officer had visited and found the availability of the capital goods in the factory premises. We find that the appellants submission that they could not start or install the co-generation power plant due to business exigencies is not disputed by the lower authorities. If that be so, the credit availed by the appellants on the said co-generation power plant and subsequent removal of the same as such cannot be faulted with. 8. As regards the Cenvat Credit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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