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2013 (9) TMI 97 - AT - Central ExciseCenvat Credit on capital goods used in the generation of power – Submission of the Revenue is that bulk electricity was being sold to the State Electricity Board and hence the cenvat credit would not be admissible as the machinery has been used for generation of electricity, and that electricity had not been used in the factory – Held that:- It is not disputed that the respondent was in the process of enhancing their capacity for production of sponge iron and other iron and steel products for which they required more electricity and for this purpose only, their power generation electricity had been enhanced - Just because during the intervening period between installation of power generation machinery for generating additional power and installation of machinery for manufacture of sponge iron and other iron and steel products, the excess power being generated was being sold outside, the capital goods cenvat credit in respect of power generation machinery cannot be denied – Relied upon the case of CCE, Raipur Vs. HEG Ltd. [2009 (11) TMI 648 - CHHATTISGARH HIGH COURT], wherein it was held that cenvat credit would be admissible on the capital goods installed in the factory for captive power generation, even if, substantial portion of the electricity generated was being wheeled out to sister concern and was not being used in the factory – Decided against Revenue.
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