TMI Blog2017 (11) TMI 475X X X X Extracts X X X X X X X X Extracts X X X X ..... of 12%/5% of the value of electricity wheeled out - appeal allowed - decided in favor of appellant. - E/50953/2014-EX(DB) - A/56929/2017-EX[DB] - Dated:- 5-10-2017 - Dr. Satish Chandra, President And Mr. V. Padmanabhan, Member (Technical) Present Shri Manish Saharan, Advocate for the appellant Present Shri M.R. Sharma, AR for the respondent ORDER Per: V. Padmanabhan 1. The present appeal is filed against the Order-in-Original No.94/2013 dated 30/09/2013. 2. The brief facts of the case are that the appellant is engaged in the manufacture of Sponge Iron, Billet etc falling under Chapter 72 of Central Excise Tariff Act, 1985. They were also availing Cenvat credit on inputs, capital goods and input services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered by him and the duty demand has been made at the rate of 10%/5% of price of electricity sold the Chhattisgarh State Electricity Board. 5. The Ld. Counsel also relied upon the decision of Hon ble High Court in the case of Gularia Chini Mills V/s Union of India - 2014 (34) STR 175 (All.) in which the Hon ble High Court held that electricity is not excisable goods and hence rule 6 of the Cenvat Credit Rules, 2004 is not applicable. 6. The Ld. DR justified the impugned order. He submitted that the sub rule 6 (3A) of the Cenvat Credit Rules, 2004 introduced w.e.f 01/04/2008 provides for proportionate reversal of Cenvat credit availed on input and input services. However, the benefit cannot be extended to the appellant since t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as much as the proportionate credit of input and input services stand reversed in the ratio of electricity wheeled out to electricity consumed in manufacture, we are of the view that the requirement of Rule 6 of Cenvat Credit Rules, 2004 stands satisfied. Accordingly there is no justification for demand of reversal of amount at the rate of 12%/5% of the value of electricity wheeled out. 10. In the case of Gularia Chini Mills (supra) the Hon ble High Court of Allahabad has observed as follows: Hence, manufacture is referred to both dutiable/excisable goods and exempted goods, which are final products. Only then, it is necessary for the manufacturer t maintain separate accounts. Rule 6 of the Cenvat Credit Rules, 2004, (which is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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