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2009 (9) TMI 851 - AT - Central ExciseCENVAT Credit - capital goods - equipment for co-generation plant - credit for the period 10/2000 to 12/2002 - sugar mill had become functional on 21-1-04 - Held that:- The co-generation plant became operational ahead of the sugar mill and during the period 1/2003 to 20-1-04, entire power generated was supplied to APTRANSCO. However, as per the PPA, SSAPL were to supply mutually agreed quantities of power to APTRANSCO and consume 0.20 MW to 3.2 MW captively. The assessee set out to set up the sugar factory with a captive co-generation plant and procured capital goods for the purpose and took credit of duty paid on them. The assessee cannot be denied credit on the ground that co-generation plant produced non-dutiable electricity and electricity was the final product at the time of receipt of equipment required to set up the power plant. On erection of the entire facility, dutiable excisable goods were the final products manufactured using, inter alia, electricity produced by the co-generation plant. It is immaterial that owing to delay in receiving certain approvals required, the sugar mill became fully operational in January, 2004 whereas the co-generation plant was operational a year earlier. The appellants eligible for the impugned credit - appeal allowed - decided in favor of appellant.
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