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2014 (2) TMI 279 - HC - Central ExciseRecovery of MODVAT Credit availed - Availment on inputs used in the generation of electricity and transferred outside the factory premises - Imposition of interest and penalty - Held that:- assessee is entitled to credit of inputs utilized in the generation of electricity only to the extent to which they are used to produce electricity within their factory - definition of “input” brings within its fold, inputs used for generation of electricity or steam, provided such electricity or steam is used within the factory of production for manufacture of final products or for any other purpose. The important point to be noted is that, in the present case, excess electricity has been cleared by the assessee at the agreed rate from time-to-time in favour of its joint ventures, vendors, etc. for a price and has also cleared such electricity in favour of the grid for distribution. To that extent, in our view, the assessee was not entitled to Cenvat credit - Following decision of Maruti Suzuki Limited v. Commissioner of Central Excise, Delhi-III [2009 (8) TMI 14 - SUPREME COURT] - Decided partly in favour of Revenue.
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