Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2019 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (9) TMI 1520 - AT - Central ExciseCENVAT Credit - denial of credit on input and input service credit, used in the generation of electricity, which was supplied to the appellant’s Damanjodi unit, for consumption in manufacture of Alumina - period March, 2005 to September, 2014 - HELD THAT:- Taken into consideration the principles of law decided by the Hon’ble Supreme Court in the case of M/S. MARUTI SUZUKI LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, DELHI-III [2009 (8) TMI 14 - SUPREME COURT] and the decision of the Hon’ble Rajasthan High Court in the case of COMMISSIONER OF CENTRAL GOODS AND SERVICE TAX, JAIPUR VERSUS SHREE CEMENT LIMITED [2018 (9) TMI 822 - RAJASTHAN HIGH COURT]. It is found that the Alumina Plant at Damanjodi, the Aluminium metal plant at Angul and the captive power plant, are integral parts of the same captive arrangement. Electricity, generated in the CPP, is captively used by both the units for manufacture of excisable goods. There is no sale of electricity by the appellant to its Damanjodi unit. Therefore, the ratio of decision of the Hon’ble Supreme Court, in the case of Maruti Suzuki is not applicable to the facts of the present case. In the case of COMMISSIONER OF CENTRAL GOODS AND SERVICE TAX, JAIPUR VERSUS SHREE CEMENT LIMITED [2018 (9) TMI 822 - RAJASTHAN HIGH COURT], the Hon’ble High Court of Rajasthan, after elaborate discussions, have distinguished the case of Maruti Suzuki case and held that input, input services used in captive power plant for generation of electricity and the excess electricity cleared by the appellant in favour of their sister units, without there being any sale in view of captive arrangement, i.e. electricity generated in one unit being consumed in the other unit of the same company in addition to its being consumed in the same unit also, cenvat credit on inputs and input services is eligible in terms of Rule 2(k) and 2(l) of the Cenvat Credit Rules, 2004. The case of CCE, Jaipur Vs. Shree Cement Ltd. is squarely applicable to the present case. Accordingly, the credit of duty/taxes paid on inputs/input services used in the generation of electricity consumed at the Koraput Plant, is eligible - appeal allowed - decided in favor of appellant.
|