TMI Blog2015 (7) TMI 1154X X X X Extracts X X X X X X X X Extracts X X X X ..... on - Since the final product manufactured by the appellant is not exempted from payment of duty credit distributed by JKWCW on the strength of valid documents, is available to the appellant as CENVAT credit, for payment of duty on removal of final product - Appeal allowed. - Appeal No. E/52386-52387/2014-EX[SM] - Order Nos. A/54158-54159/2015-SM[BR] - Dated:- 14-7-2015 - Mr. S.K. Mohanty, Member (Judicial) Mr BL Narasimhan, Advocate, For Appellant Mr. R K. Gupta, DR, For Respondent ORDER Per Mr. S.K. Mohanty : The brief facts of the case are that the appellant was engaged in the manufacture of grey cement and is registered with the Central Excise Department. M/s.J.K. White Cement Works (JKWCW), a white cement plan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, as envisaged under Rule 2 (m) of the Cenvat Credit Rules 2004 Input services were exclusively received by JKWCW and not by the appellant; electricity classifiable under Chapter No.2716 of the Central Excise Tariff Act 1985 is non-excisable therefore input services used in its generation cannot be distributed in terms of Rule 7 of the Credit Rules. 2. Basing on the objections raised by the Audit team, show cause notices dated 20.04.201 1 and 28.09.2012 were issued for the period in question proposing denial of CENVAT credit, availed by the appellant on the invoices issued by ISD. The said demands in question were confirmed by the Id Additional Commissioner vide Order-in-Originals dated 15.06.2012 27.08.2013 respectively, which were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sis of ISD invoices needs to be raised at the end of ISD, i.e. JKWCW and not at the appellant's end. It is his submission that input services were received by JKWCW for generation of electricity within their factory and the generated electricity was transmitted to the appellant s unit for manufacture of dutiable final product hence denial of CENVAT credit is not proper in view of the fact that the inputs are not being used for manufacture of the exempted goods in the factory of the appellant. It is his further submission that since the electricity was intermediate product used in or in relation to manufacture of dutiable product, service tax paid on the input services, used for generation of electricity, can be distributed in terms of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant was manufacturing dutiable goods taking of CENVAT credit of service tax on the basis of ISD invoices IS in conformity with the rules and the same cannot be denied on the ground that JKWCW does not work as the office of the appellant. Since the appellant has taken the CENVAT credit based on the tax paid documents and complied with the requirement of Rule 7 of the CENVAT Credit Rules, 2004 the credit so taken cannot be denied to the appellant. Payment, if any, regarding admissibility of credit can be raised at the end of the Input Service Distributor which in the present case has not been done. 8. Though the input services were received by JKWCW the same were used for generation of electricity, which was transmitted to the app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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