TMI Blog2015 (9) TMI 295X X X X Extracts X X X X X X X X Extracts X X X X ..... d accordingly the impugned order is not sustainable. - Decided in favour of assessee. - Appeal No. E/594/12-MUM - - - Dated:- 8-1-2015 - P. K. Jain, Member (T) And Ramesh Nair, Member (J),JJ. For the Appellant : Shri J N Somaiya, Adv. For the Respondent : Shri A Nath, Asstt. Commissioner (AR) ORDER Per: Ramesh Nair: The appeal is directed against Order-in-Original No. 28/CEX/COMMR/KOP/2011 dtd. 30/11/2011 passed by the Commissioner of Central Excise Kolhapur, wherein following order was passed: Order i. I confirm the demand of ₹ 1,69,89,466/- (Rupees One Crore Sixty Nine Lakhs Eighty Nine Thousand Four Hundred and Sixty Only) on M/s. Rajarambapu Patil Sahakari Sakhar Karkhana Ltd., (Unit NO. 2), Wategao ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this order. 1.1 The facts of the case is that the appellant is engaged in the manufacture and clearances of Sugar and Molasses falling under Chapter 1701 1703 of the first schedule to the Central Excise Tariff Act, 1985 respectively. They availed the facility of Cenvat Credit under the Cenvat Credit Rules, 2004. The Sugar and Molasses manufactured by them are cleared on payment of appropriate Central Excise Duty leviable thereon. They also generates Electricity which is supplied/sold to M/s. Maharashtra State Electricity Board (MSEB) without payment of duty in accordance with the Central Excise Tariff Act, 1985. The adjudicating authority has confirmed the demand towards 10%/5% as the case may be of value of exempted electricity gener ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, Shri. A. Nath, Asstt. Commissioner (A.R.) appearing for the Revenue reiterates the findings of the impugned order. 4. We have carefully considered the submissions made by both the sides. 5. In the present case the demand of 10%/5% of the value of electricity generated and supplied to M/s. MSEB was made in terms of Rule 6(3) of Cenvat Credit Rules, 2004. The undisputed fact is that the appellant is sugar/molasses manufacturing unit, electricity so generated and supplied to M/s. MSEB is manufactured out of bagasse. The identical issue has been decided by the Hon'ble Gularia Chini Mills vs. Union of India (supra) held as under:- For the discussions made hereinabove, it is clear that Geetanjali Woolens Mill judgment relied upon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re of steam, turbine generates electricity but no steam is being used in manufacture of electricity. In these circumstances, the case laws relied upon by the learned AR have no relevance to the facts of this case. In the case of Sanghi Industries Ltd. (supra), the inputs were furnace oil/lubricants which were used in generation of electricity and in the case of MCC PTA India Corpn. Pvt. Ltd. (supra), fuel and other goods were used in generation of electricity. Therefore, the facts of the case laws relied upon by the learned AR are not applicable to the facts of this case. 7. We further find that the facts of the case of Gularia Chini Mills (supra) are relevant to the facts of this case, wherein the Hon'ble High Court has held that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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