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2019 (12) TMI 527 - AT - Central ExciseCENVAT Credit - capital goods installed within the CPP - electricity generated from such capital goods was captively consumed for the manufacture of dutiable final products - applicability of Rule 6 of the CCR - Circular dt. 23 December 2013 - HELD THAT:- The electricity generated using the capital goods, in that case, acquires the nature of an intermediate product and even if such intermediate product is exempt from excise duty, Cenvat credit on the capital goods cannot be denied in terms of para 3 of the Board Circular dated 25 September 2002 - credit allowed. CENVAT Credit - input services used in the Captive Power Plant - Rule 6(5) of the CCR - CBEC Circular Nos. 137/203/2007 dt. 1 October 2007 and 868/6/2008-CX dt. 9 May 2008 - HELD THAT:- The Board at para 2 of its Circular dated 1 October 2017 has clarified that the purpose of identifying the 17 specified services for special dispensation is these services are similar in nature to capital goods, that cannot be apportioned for maintaining separate records. Since these input services were undisputedly used in the manufacture of electricity further used, inter alia, in the manufacture of dutiable goods within the factory premises, it cannot be said that such services were exclusively used in the manufacture of exempted goods - the treatment to these services in so far as credit is concerned can be no different than capital goods - credit allowed. CENVAT Credit - iron and steel articles used for repair and maintenance of capital Goods - time limitation - HELD THAT:- Having audited the records for the relevant period earlier and accepted the orders dropping the demand raised during the said period, full facts were within the knowledge of the department and Revenue now cannot claim suppression on the part of the Appellant while issuing the subsequent Notice dated 30 April 2014, with which we are concerned in the present proceedings, to justify invocation of extended period of limitation. The Commissioner misdirected himself in negating the challenge to invocation of extended period on the ground that the same set of invoices were not covered by the earlier proceedings - the demand on this count is set aside being barred by limitation. Scope of SCN - CENVAT Credit - clearance/Sale of scrap and waste - Rule 3(5) of the CCR - HELD THAT:- The Commissioner has clearly travelled beyond the Notice in so far as he holds that even if it is assumed that sold waste and scrap were not capital goods and the provision of Rule 3(5A) was not applicable still the Appellant was liable to pay duty under Section 11A of the Central Excise Act. In the absence of any allegation in the Notice that such waste and scrap was the result of the manufacturing process, the demand for central excise duty could not sustain - demand set aside. Appeal allowed - decided in favor of appellant.
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