TMI Blog2018 (10) TMI 889X X X X Extracts X X X X X X X X Extracts X X X X ..... credit of the electricity not used within the factory, after adjusting amount already reversed or deposited, for the intended purpose - reliance placed in the case of Shree Shyam Ispat (India) Pvt. Ltd. [2018 (6) TMI 1537 - CESTAT NEW DELHI] - appeal allowed - decided in favor of appelant. - Excise Appeal No.52052/2018 - A/52971/2018-EX[DB] - Dated:- 29-8-2018 - SHRI ANIL CHOUDHARY, MEMBER (JU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration. The appellant avails Cenvat credit of Central Excise duty paid on inputs and capital goods and service tax on the input services. Since Cenvat credit taken on the input, input services and capital goods were not fully utilized in the manufacture of the final product and some quantity of the generated electricity is wheeled out from the factory, the Department objected to the availm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ragraph no.3 and 4 of M/s.Shree Shyam Ispat (India) Pvt. Ltd. (supra) are as follows:- 3. Cenvat Credit Scheme permits a manufacturer to take credit of duties and service tax paid on the input and input services used in or in relation to manufacture of the dutiable final product. Where the manufacturer is engaged in manufacture of both dutiable and exempted final product, Rule 6 of the Cenva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the factory. However, it is an admitted fact that the electricity generated by using the input and input services were not captively consumed for manufacture of the final product in entirety. Since some portion of generated electricity has been sold by the appellant to the grid on receipt of consideration, in my opinion, Cenvat credit attributable (proportionate) to the electricity wheeled ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant should reverse proportionate Cenvat credit of the electricity not used within the factory, after adjusting amount already reversed or deposited, for the intended purpose. Penalties are set aside. The appeal is allowed in above terms. 7. After hearing both the sides and on perusal of the records, it appears that the issue is squarely covered by the decision in the case of M/s. Shree ..... X X X X Extracts X X X X X X X X Extracts X X X X
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