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2023 (10) TMI 729 - AT - Central ExciseDenial of retention of credit - supplying excess production to the Tamil Nadu Electricity Board (TNEB) - generation of electricity and steam in the coal fired 50 MW ‘captive power plant’ installed for consumption in the factory. It is common ground that the entire production of steam and bulk of electricity were utilized in manufacture of various excisable goods. HELD THAT:- The reviewing authority has placed emphasis in rule 2 of CENVAT Credit Rules, 2004 even though the proposal was for reversal of proportional credit by recourse to rule 6 of CENVAT Credit Rules, 2004 which is the mechanism restrictedly applicable to taking of credit correctly in terms of rule 3 therein read with rule 2(l) but to be retained subject to subsequent usage only. For denial of retention of credit after such licit availment, the provisions of rule 6 of CENVAT Credit Rules, 2004 would alone be applicable. The appellant has not been able to demonstrate, by reference to the proportionate reversal mechanism therein, that the activity of the respondent herein is susceptible to such denial. The appeal is without merit and is dismissed.
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