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2016 (12) TMI 778 - AT - Central ExciseDemand - CENVAT Credit availed was inadmissible as per Rule 6(4) of CENVAT Credit Rules, 2004 - Held that: - It is not in dispute that the major portion of the electricity generated was used in the manufacture of dutiable goods viz. carbon black. Thus, it is clear that the capital goods installed are not exclusively used in the manufacture of finished goods which are exempted from duty. The aforesaid issue is considered by Hon'ble Gujarat High Court in United Phosphorous Ltd case [2015 (7) TMI 665 - GUJARAT HIGH COURT], albeit in the erstwhile Rule 57Q of Central Excise Rules 1944, however, the same is relevant in deciding the issue in the new set of rules also. In the said judgment, the Hon'ble Court, referring to the judgment of this Tribunal in the case of Kothari Sugars & Chemicals Ltd Vs Commissioner [2005 (11) TMI 124 - CESTAT, CHENNAI] and the decision of Hon'ble Supreme Court in the case of Solaris Chemtech Ltd [2007 (7) TMI 2 - SUPREME COURT OF INDIA], held that since the electricity generated by the Appellant was not totally sold outside but partly consumed captively, therefore, the CENVAT Credit availed on the capital goods cannot be denied. Following the aforesaid decision, I have no hesitation to hold that the Appellants are eligible to CENVAT Credit on capital goods installed in the factory for generation of electricity, which in turn, used in the manufacture of carbon black even though a part of it sold to M/s Adani Exports Ltd through Gujarat State Electricity Board - appeal allowed - decided in favor of appellant-assessee.
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