TMI Blog2016 (7) TMI 497X X X X Extracts X X X X X X X X Extracts X X X X ..... ital goods for generation of electricity and consumption of such electricity by the appellant in the manufacture of dutiable final products. - Credit cannot be denied - Decided in favor of assessee. - E/00114/2009 - FINAL ORDER NO. 40892/2016 - Dated:- 6-6-2016 - Shri D.N. Panda, Judicial Member and Shri B. Ravichandran, Technical Member For the Appellant : Shri S. Venkatachalam, Adv. For the Respondent : Shri K. Veerabhadra Reddy JC (AR) ORDER The appeal is against order dated 26.11.2008 of Commissioner of Central Excise, Trichy. The brief facts of the case are that the appellants are engaged in the manufacture of iron steel billets, waste and scrap liable to Central Excise duty. They have another sister Unit (M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions of the Hon ble Supreme Court and the Tribunal that the usage of inputs or capital goods in or in relation to manufacture of final products cannot be restricted only on the ground of the location of usage. He relied on various decided cases in this regard. 4. The learned Authorised Representative opposes the contentions of the appellant. He submitted that the capital goods on which credits were availed were actually installed as ancillary parts of already existing generator sets of M/s. OPG Energy Pvt. Ltd. The appellant being a separate legal entity cannot claim credit on the capital goods used by another person in the generation of electricity. He submitted that the usage of capital goods in the factory premises of the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further power generation. Keeping these factual details in mind, we find no justification to deny the credit on these capital goods only on the ground that these are installed in the premises of sister Unit. 7. Hon ble Supreme Court in the case of Vikram Cement Vs Commissioner of Central Excise, Indore reported in 2006 (194) E.L.T. (S.C.) examined the terms within the factory of production , though in connection with entitlement of credit for inputs. The Hon ble Supreme Court held that the term means only such generation of electricity or steam which is used within the factory would qualify as an intermediate product. In Steel Authority of India Ltd. Vs Commissioner of Central Excise, Bhubaneswar reported in 2007 (219) E.L.T. 960 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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