TMI Blog2022 (7) TMI 1176X X X X Extracts X X X X X X X X Extracts X X X X ..... would not be available. In the case of Maruti Suzuki Ltd. v. Commissioner [ 2017 (5) TMI 697 - PUNJAB AND HARYANA HIGH COURT ], the Hon ble Supreme Court has held that assessee is entitled to credit on the eligible inputs utilized in the generation of electricity to the extent to which they are using the produced electricity within their factory (for captive consumption). They are not entitled to CENVAT credit to the extent of the excess electricity cleared at the contractual rates in favour of joint ventures, vendors etc., which is sold at a price. T he matter needs to be remanded back to the original authority for re-consideration and re-quantification - appeal allowed by way of remand. - Excise Appeal No.521 of 2007 - FINAL OR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nery. They use furnace oil like diesel oil and reduced crude oil produced by them in the captive power plant for generating electricity. They do not reply the entire quantity of electricity so generated for manufacture within the factory premises. Part of electricity is used in general facilities like pumping oil in pipelines, bunkering installations, workshop, marketing division, laboratory, administration building etc. and partly supplied to M/s. V.I.V. Ltd., Haldia and West Bengal State Electricity Board (WBSEB). 2.2 In respect of electricity so used in a manner other than production of the goods in their factory, three show cause notices as written in Para 1 were issued to the respondents. 2.3 These show cause notices have been ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of petroleum products manufactured in the refinery. The exemption shall not be available in respect of RCO/LSHS used in the generation of electricity which in turn is not used in the process and manufacture of petroleum products within the refinery area. 4.2 Further, he relied upon the decision of Hon ble Punjab Haryana High Court in the case of Maruti Suzuki India Limited Vs. Commr. of Central Excise, Delhi-III [2017 (5) G.S.T.L. 18 (P H)], in para 15 16 of which, the Hon ble High Court has held as follows:- 15 . It was contended that the electricity that was wheeled out was used by the third parties for the purpose of manufacturing components for the assessee and these components were used by the assessee for the manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cumstances such as those in the present case. In this case, the input services (transport of LNG by GAIL to the assessee) constituted components of products sold by the assessee to the third parties (electricity) which the third parties used in their own right for the manufacture of their final products which in turn they sold to the assessee and the assessee used for the manufacture of its final product. 4.3 He also relied upon the decision of Tribunal in the case of Chennai Petroleum Corporation Ltd. Vs. Commr. of C.Ex., Chennai-I [2018 (359) E.L.T. 538 (Tri.-Chennai)]. 5. Shri Saurav Gupta, Ld.Accounts Officer for the Respondent asserts that a portion of electricity was used within the premises in the general facilities available ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee was not entitled to CENVAT credit. In short, assessee is entitled to credit on the eligible inputs utilized in the generation of electricity to the extent to which they are using the produced electricity within their factory (for captive consumption). They are not entitled to CENVAT credit to the extent of the excess electricity cleared at the contractual rates in favour of joint ventures, vendors etc., which is sold at a price. 6.3 The case needs to be re-examined in the light of the above referred judgement and complete view taken in the matter. Accordingly, the matter needs to be remanded back to the original authority for re-consideration and re-quantification. 6.4 The Appeal filed by the Revenue is allowed to this extent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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