TMI Blog2019 (12) TMI 1016X X X X Extracts X X X X X X X X Extracts X X X X ..... e . Hence, the terms factory includes all the facilities, including that of manufacturing process, within its boundary wall. As was prior to 01.04.2011, CENVAT credit was available on goods used in generation of electricity and consumed within the boundary wall of the factory of production in or in relation to manufacture of final products, or for any other purpose which may not have direct relation to manufacture - This view was also ratified by the Hon ble Supreme Court in the judgement in the case of Maruti Suzuki Ltd. Vs. Commissioner of Central Excise, Delhi-III [2009 (8) TMI 14 - SUPREME COURT] wherein the Hon ble Court has inter alia observed that assessee is entitled to credit on the eligible inputs utilized in the generation of electricity to the extent to which they are using the produced electricity within their factory (for captive consumption) - However, with effect from 01.04.2011, with the abolition of the phrase used in or in relation to manufacture of final products from the definition of input vide Notification No.3/2011-CE(Nt) dated 01.03.2011, the scope of input has not only been more widened, it has also become more inclusive. With effect from 01.04.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15 and thereafter during the period under dispute i.e. March 2016 to February 2017 no Furnace Oil was consumed for generation of electricity which has been shown as Nil in Annexure-A i..e page 73 of the appeal paperbook. It is his submission that since there was no consumption of any Furnace Oil, the allegation as made in the Show Cause Notice is not tenable and accordingly the impugned orders are fit to be set aside. 3. Learned Authorized Representative appearing on behalf of the respondent justified the impugned orders and further submits that the appeal is devoid of any merit and is fit to be dismissed. 4. Heard both sides and perused the appeal records. 5. I find that in the appellant s own case for the period from July 2014 to August 2015 there was a similar disallowance of ₹ 7,49,876/- on such portion of Furnace Oil consumed for generation of electricity which was not used in or in relation to manufacture of final products. The learned Commissioner(Appeals) vide Order-in-Appeal No.54/HAL/CE/2017-18 dated 16.11.2017 has discussed the entire issue in details and finally concluded that the appellant assessee had rightly avail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l goods; Rule 2(k) of CENVAT Credit Rules, 2004 Definition of input w.e.f. 01.04.2011. input means- (i) all goods used in the factory by the manufacturer of the final product; or (ii) any goods including accessories, cleared along with the final product, the value of which is included in the value of the final product and goods used for providing free warranty for final products; or (iii) all goods used for generation of electricity or steam for capitive use; or (iv) all goods used for providing any output service; but excludes - (A) light diesel oil, high speed diesel oil or motor spirit, commonly known petrol; (B) any goods used for- (a) construction of a building or a civil structure or a part thereof; or (b) laying of foundation or making of structures for support of capital goods, except for the provision of any taxable service specified in sub-clauses (zn), (zzl), (zzm), (zzq), (zzzh) and (zzzza) of clause (105) of section 65 of the Finance Act; (C) capital goods except when used as parts or componen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cussion unambiguously infers that, as was prior to 01.04.2011, CENVAT credit was available on goods used in generation of electricity and consumed within the boundary wall of the factory of production in or in relation to manufacture of final products, or for any other purpose which may not have direct relation to manufacture. This view was also ratified by the Hon ble Supreme Court in the judgement in the case of Maruti Suzuki Ltd. Vs. Commissioner of Central Excise, Delhi-III [2009 (240) E.L.T. 641 (S.C.)] wherein the Hon ble Court has inter alia observed that assessee is entitled to credit on the eligible inputs utilized in the generation of electricity to the extent to which they are using the produced electricity within their factory (for captive consumption). Also, Hon ble Tribunal in the similar case of Manali Petrochemicals Ltd. Vs. CCE, Chennai [2004 (167) E.L.T. 434 (Tri.-Chennai)] held that Nitrogen used for chilling water and if a portion of that chilled water was used for administrative purposes, such portion of nitrogen should not suffer duty. However, with effect from 01.04.2011, with the abolition of the phrase used in or in relation to manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X
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