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2016 (6) TMI 402 - AT - Central ExciseEligibility to avail the credit on input services - generation of electricity which is partly cleared to their sister units who are also engaged in the manufacture of dutiable final products - Held that:- Considering that the electricity has been used in the manufacture of dutiable final products and also the fact that all units belong to the appellant the denial of credit is not justifiable in the present case. Further, it is a fact that if the appellant were to follow the procedure for input service distribution the credit eligibility on part of the electricity cleared to sister unit could not have been questioned and the credit could have been passed on to the unit which is actually using the electricity or retained fully by the appellant himself without proportionate distribution. Such being the factual position, find that the impugned orders are not sustainable. Further, the reliance placed on Maruti Suzuki Ltd. vs. CCE, Delhi - III (2009 (8) TMI 14 - SUPREME COURT) is not appropriate. The input service credits attributable to the electricity sold to utility companies are not available to the appellants as held by the Hon’ble Supreme Court. This, the appellants are not contesting and have already reversed the amount towards such input service credits. - Decided in favour of assessee.
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