TMI Blog2016 (10) TMI 649X X X X Extracts X X X X X X X X Extracts X X X X ..... as been cleared on payment of duty - the appellant has correctly availed the credit on capital goods i.e. bulk milk coolers and DG sets - appeal allowed - decided in favor of appellant. - E/56513 & E/56518/2013-(SM) - FINAL ORDER NO.61053-61054/2016 - Dated:- 9-8-2016 - Ashok Jindal, Member (Judicial) Appellant By : Shri Krati Somani, Advocate Respondent : Shri Atul Handa, Ld. A.R ORDER Per : Ashok Jindal The appellant is in appeal against the impugned order denying the credit on capital goods on the allegation that the capital goods installed in various villages around the factory. 2. The brief facts of the case are that the appellants are engaged in the manufacture of health products i.e. Horlicks, Boost, e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of manufacturing process of the appellant. These milk collection centers are under the management of the appellant. After sale of the milk between the appellant and the local milk supplier, the ownership of the milk transferred to the appellant at milk collection centers itself. Milk collection centers form integral part of the unit, therefore, they entitled to avail credit in the light of the decision of Apex Court in the case of Vikram cements-2006 (197) ELT 145 (SC) and Hindalco Indalco Industries Ltd.-2014 (313) ELT (Tri.-Del.), Biral Corporation Ltd.-2005 (186) ELT 266 (SC) and this Tribunal in the case of JSW Steels Ltd.- 2014 (307) ELT 929 (Tri.-Chennai)and Kallam Spinnng Mills Ltd.-2007-TIOL-523-CESTAT-Bang. She also relied on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecision Bharat Oman Refineries-2014 (309) ELT 549 (Tri.-Del.) and also in the case of Southern Iron Steel Co.-2000 (121) 164 (Tri), Vikash Industrial Gases-2000 (118) ELT 257. Therefore, he submits that the credit is not available to the appellant. 6. Heard both sides and considered the submissions. 7. On careful consideration of the submissions made by both sides, I find that the issues emerge in this case is whether the appellant is entitled to avail credit on bulk milk cooler installed at milk collection center and DG sets away from the factory or not. 8. Learned AR has relied on the decision of Bharat Oman refineries to interpret the words premises and precincts. He further relied on the South Eastern Coalfileds and Vikash In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te one integrated unit and it is not disputed that except of small quantity of electricity generated being used in the Renusagar township, the remaining quantity is used in the appellant's factory for production of aluminium. Therefore, the Cenvat credit in respect of capital goods and inputs used in the captive power plant located at Renusagar cannot be denied just because the power plant is located at some distance from the factory. 6.4 We also find that the Apex Court in the case of State of U.P. v. Renusagar Power Company reported in 1988 (4) SCC 59 has held that Renusagar Power Plant had no separate and independent existence apart from and independent of Hindalco (the appellant) and therefore the Renusagar Power Plant has to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, dismissed. The respondent having taken a conscious decision to accept the principles laid down in Pepsico India Holdings Ltd. (supra) cannot be permitted to take the opposite stand in this case. If we were to permit them to do so, the law will be in a state of confusion and will place the authorities as well as the assessees in a quandary. 6. We, therefore, allow this appeal and hold that Modvat credit is available to the appellant in the facts and circumstances of the case. This appeal is accordingly allowed. The order of the CEGAT is set aside. 12. This issue also came up before this Tribunal in the case of JSW Steel Ltd. (supra) wherein it has been observed as under: 30. In this case, the other relevant facts ..... X X X X Extracts X X X X X X X X Extracts X X X X
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