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2015 (4) TMI 215 - CESTAT MUMBAIDenial of CENVAT Credit - Non maintenance of separate accounts - Held that:- Only bagasse, a byproduct, on which no duty is payable, is used in generation of electricity as fuel. Bagasse is put into the boiler and steam generates and by the pressure of steam, turbine generates electricity but no steam is being used in manufacture of electricity. - Facts of the case of Gularia Chini Mills (2013 (7) TMI 159 - ALLAHABAD HIGH COURT) are relevant to the facts of this case, wherein the Hon'ble High Court has held that the electrical energy generated from bagasse is not covered under Chapter 27. Therefore, electrical energy is not an excisable goods nor is it exempted as defined in Section 2(d) of the Act. It was further held that the electricity is not an excisable goods under section 2(d) of the Act, hence Rule 6 of the Cenvat Credit Rules is not applicable as held by the Hon'ble Supreme Court in the case of Solaris Chemtech Ltd. Therefore, relying on the decision of the Hon'ble Allahabad High Court, we hold that the respondents are not required to reverse an amount of 10% of the value of electricity sold by the respondents to MSEDCL. Therefore, we do not find any infirmity in the impugned order and the same is upheld - Decided against Revenue.
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