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M/s Steel Authority of India Ltd. Versus CCE, Raipur

Captive consumption - clearance of goods to captive power plant - Pitch Creosote Mixture (PCM) - demand on the ground that the power generating unit is a separate legal entity - Held that: - goods used as fuel or for generation of electricity, used for manufacture of final products or for any other purpose, within the factory of production is eligible to be called as input. Further, PCM is used within the factory premises of the appellant is also an admitted fact. The said PCM is used in the gen .....

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Shri B. Ravichandran, Member (Technical) Ms. Sukriti Das, Advocate - for the appellant Shri K. Poddar, Authorized Representative (DR) - for the respondent. ORDER Per: B. Ravichandran The appeal is against order dated 16/03/2012 of Commissioner of Central Excise, Raipur. The appellants are engaged in the manufacture of Iron and Steel items liable to Central Excise duty. They were availing credit of duty paid on inputs, capital goods and service tax paid on input services in terms of Cenvat Credi .....

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eparate legal entity, was held to be not covered under the category of captive consumption and the provisions of Cenvat Credit Rules also was held to be not applicable. 2. The present impugned order was passed as per the directions of the Tribunal by a final order No.625/2011 - CE (DB) dated 20/07/2011. The said remand order of the Tribunal mentioned only the issue relating to reversal of credit availed on common inputs used both for exempted as well as dutiable final products. In view of the re .....

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held that in the PCM cleared by the appellant to the power generating unit is liable to Central Excise duty. Penalty of equivalent amount was also imposed on the appellant in terms of Section 11AC of the Act. 3. The learned Counsel for the appellant submits that PCM is cleared by them to the power generating unit situated within the factory and the same has been used in the generation of the electricity which in turn is used by them in the manufacture of excisable goods. As such, no duty is liab .....

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ngs of the Original Authority. 5. I have heard both the sides and perused the appeal records. Admittedly, PCM is an excisable product. The said PCM is cleared by the appellant to the power generating unit for being used in the generation of electricity. Admittedly, the said power generation facility is located within the premises of the appellant. The same fact is recorded by the lower Authorities also. The Central Excise duty on PCM is confirmed only on the ground that the power generating unit .....

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irectly or indirectly and whether contained in the final product or not, and includes lubricating oils, greases, cutting oils, coolants, accessories of the final products, goods used as paints, or as packing material, or as fuel, or for generation of electricity or steam used for manufacture of final products or for any other purpose, within the factory of production . 6. From the above definition, it is clear that goods used as fuel or for generation of electricity, used for manufacture of fina .....

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