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TMI Blog2011 (6) TMI 599X X X X Extracts X X X X X X X X Extracts X X X X ..... paper and paperboard and is also supplied to the residential colony/guesthouse/schools/hospitals etc. The authorities issued Show Cause Notice for reversal of proportionate amount of credit as inputs, i.e., fuel which was gone into the electricity which was supplied to residential colony/guesthouse/schools/hospitals etc.). The appellant defended such, demand. Adjudicating authority did not agree with the contentions raised and confirmed the demand of the reversal of Rs. 21,437/- with interest and also imposed penalty of Rs. 2,000/-. Aggrieved by such an order, the appellant preferred an appeal before the first appellate authority. The first appellate authority did not agree with the contention of the appellant and upheld the Order-In-Origi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit Rules, 2001 and Cenvat Credit Rules, 2002. During the period from 1997 to 2002 the electricity generated has been utilised by the assessee within the licensed premises for manufacture of final product and at the residential complexes. The question is, whether the assessee is entitled to the credit of duty paid on furnace oil used in the generation of electricity for supply to residential complexes situated within the licensed premises? 19. According to the assessee, the words "any other purpose" in rule 57B(iv) is wide enough to cover supply of electricity to the residential complexes. In other words, the submission is that once it is established that the electricity manufactured from the duty paid furnace oil is used within the factor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... connected with or related to the production of the final products. In this view of the matter, we hold that the finding recorded by the Tribunal that the assessee is not entitled to the credit of duty paid on the furnace oil used in the generation of electricity supplied to the residential complexes cannot be faulted. 22. The decision of the Apex Court in the case of Grauer and Weil (I) Ltd. v. CCT (supra) and the case of South Eastern Coalfields Limited v. CCE (supra) relied upon by the assessee do not support their case. What is held in those cases is that the words "any premises including the precincts thereof" in section 2(m) of the Central Excise Act are wide enough to cover any activity carried on within the licensed premises. In bo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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