TMI Blog2009 (12) TMI 824X X X X Extracts X X X X X X X X Extracts X X X X ..... it availed by the appellant on Naptha and Furnace Oil utilized in manufacture of electricity has been denied to the extent of electricity used in the residential colony, mines and jetty. Total demand of Rs. 95,33,686/- relates to the period from April, 2001 to Sept., 2004 and an amount of Rs. 22,68,158/- demanded relates to the period from Oct., 2004 to March, 2005. Penalty of Rs. 95,33,686/- has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that where explosives, lubricating oils are used in the mines, Cenvat credit has to be allowed. He also submitted that in this case, mines are captive mines only and therefore the issue is squarely covered by the decision of the Hon ble Supreme Court. As regards residential colony, in view of several precedent decisions, he fairly agrees that proportionate Cenvat credit is liable to be rever ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, the decision of Hon ble Supreme Court in Vikram Cement case, would not be applicable and since the power has been wheeled out of the factory for use in mines, jetty and residential colony, appellants are not eligible for Cenvat credit to the extent of electricity used in mines/residential colony/jetty. Further, he also submitted that the appellants never disclosed the fact that electricity w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted above applies and further we have also applied ratio of the same judgment in the case of same appellant in our Order No. S/2614-2615/WZB/AHD/08, dated 25-11-08. Therefore, we hold that the appellants are eligible for Cenvat Credit in respect of the inputs used in the electricity used in the mines also. As regards electricity used in the residential colony, learned advocate fairly agreed that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extended period also, taking note of the fact that there were decisions in favour of the parties in respect of power wheeled out to other units, we consider it appropriate that extended period is not invoked in this case. 5. In view of the above, the demand of duty of Rs. 5,35,197/- towards Cenvat credit on the input used in electricity which was in turn used in residential colony, is disallowed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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