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TMI Blog2017 (11) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... was sent to the power grid. The appellant was availing benefit of the Cenvat Credit on inputs, input services and capital goods for used in that power plant. The case of the Revenue is that as the appellant has yield out the excess electricity generated by them to the power grid, therefore, the electricity which has been transferred to the power grid, the input pertaining to the part of the electricity yield to power grid, they are not entitled to avail Cenvat Credit. In these set of facts, the proceedings were initiated against the appellant and consequentially after denial of the Cenvat Credit, the demand was confirmed. On appeal before the Ld. Commissioner (Appeals), the Ld. Commissioner (Appeals) examined the issue that the respondents ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct cited issue. As per the terms and conditions mentioned in the various memos issued by erstwhile HSEB while according the approval for running your captive power plant in parallel with the grid, the pumped (injected) energy to your CPP in the grid cannot be treated as a sale of energy to the DHBVNL. Due to the parallel operation of the CPP with Grid some amount of energy is likely to flow in either direction please. Moreover, as per Indian Electricity Act, 1948, no captive power plant owner can sell his surplus energy either to any consumer or to the Nigam." 5. It is seen from the agreement that the power grid charged 10% of the value of electricity for providing of synchronisation. The learned Advocate contended that the appellant was i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... city which was cleared outside the factory of production is not sustainable. Therefore, appeals are allowed." 8. In the present case, there is no sale of electricity to the power grid. It is also noted that the electricity sent to power grid was returned back to the appellant, which was further used in the manufacture of final product. The Hon ble Supreme Court categorically observed that the reversal of credit would be required on the wheeled out of electricity at a price to the joint venture/vendor etc., for manufacture. In the present case, there is no sale of electricity, and the same was returned back to their factory for consumption in their final product. So, we do not find any substance in the submissions of the learned Authorised ..... X X X X Extracts X X X X X X X X Extracts X X X X
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