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2022 (9) TMI 267 - AT - Central ExciseRecovery of reducing the proportionate credit - CENVAT Credit - inputs /input services used by it for providing of electricity part of which it supplied its sister unit - HELD THAT:- The case of the appellant Revenue is that since part of the electricity is transferred to sister unit, the inputs used in generating it to that extent is an input for the sister unit as it is relatable to the goods manufactured by it and they are not inputs relatable to the final products of this respondent. Each unit is separately registered and is a separate assessee as far as central excise is concerned. To the extent the electricity is sold to outsiders, the respondent has reversed the CENVAT credit. On identical issue, High Court of Rajasthan had in COMMISSIONER OF CENTRAL GOODS AND SERVICE TAX, JAIPUR VERSUS SHREE CEMENT LIMITED [2018 (9) TMI 822 - RAJASTHAN HIGH COURT], allowed CENVAT credit on the inputs used in production of electricity which is supplied free of cost to the assessee’s sister unit. The respondent is entitled to CENVAT credit to the extent the inputs are used for production of electricity which is transferred free of cost to its sister unit - Appeal dismissed - decided against Revenue.
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