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2016 (11) TMI 1218 - CESTAT HYDERABADCENVAT credit - electricity generated used captively as well as sold outside - Held that: - any services used by a manufacturer whether directly or indirectly in or in relation to the manufacture of final products and clearance of final products upto the place of removal would be eligible for credit. The input services used for setting up of captive power plant, of which the electricity generated is not exclusively used for manufacture of final products cannot be said to be covered by the definition - The appellants in the instant case had availed credit of entire service tax on input services without maintaining separate accounts, though the electricity generated from the power plant was sold and supplied outside, and therefore, were eligible to take only proportionate credit. In view thereof, on merits, the issue stands answered in favour of the revenue. Period of limitation - Held that: - The appellants have filed E.R 1 returns regularly disclosing the credit availed by them. When all details relating to the availment of credit are available with the department, the allegation that full facts were not furnished in the documents and that respondent suppressed facts is factually incorrect. In a number of decisions, the Tribunal and courts has held that there should be conscious or deliberate withholding of information with intention to evade payment of duty to saddle the manufacturer with liability beyond the period of one year. Under the circumstances, the allegation that appellant has wilfully suppressed facts with intent to evade payment of duty is not tenable and the demand invoking the extended period is not sustainable. In view thereof, the issue of limitation is answered in favour of the respondents. Appeal dismissed.
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