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2022 (7) TMI 1176 - AT - Central ExciseDemand of Central Excise duty - electricity so used in a manner other than production of the goods in their factory - captive consumption - benefit of N/N. 67/1995-CE dated 16.03.1995 - HELD THAT:- The electricity generated by the Appellant in the captive power plant is used for both production of the finished goods within the refinery and for other purposes including the electricity wheeled out. In such circumstances, it is found that Hon’ble Supreme Court and Hon’ble Punjab & Haryana High Court referred to by Ld.Authorized Representative have clearly held that in respect of electricity wheeled out, the benefit would not be available. In the case of Maruti Suzuki Ltd. v. Commissioner [2017 (5) TMI 697 - PUNJAB AND HARYANA HIGH COURT], the Hon’ble Supreme Court has held that assessee is entitled to credit on the eligible inputs utilized in the generation of electricity to the extent to which they are using the produced electricity within their factory (for captive consumption). They are not entitled to CENVAT credit to the extent of the excess electricity cleared at the contractual rates in favour of joint ventures, vendors etc., which is sold at a price. The matter needs to be remanded back to the original authority for re-consideration and re-quantification - appeal allowed by way of remand.
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