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TMI Blog2022 (9) TMI 267X X X X Extracts X X X X X X X X Extracts X X X X ..... r where whereby he modified the order of the lower authority dated 29.3.2018 reducing the proportionate credit to be recovered from the respondent to Rs. 12,35,667/- from Rs. 1,66,45,239/-. 2. The respondent is engaged in manufacture of Ferro Alloys falling under Chapter 72 of the Central Excise Tariff. It also has another unit in the same area and both units have separate central excise registrations and both are maintaining separate statutory records. The appellant's records were audited by the Department for the period December 2011 to March 2016 and several points were raised by the audit. The only one which remains to be decided is regarding the Cenvat credit on the inputs /input services used by it for providing of electricity part o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lower authority as discussed above. 5. Revenue's submissions are as follows: (a) Cenvat credit can be availed by a manufacturer in terms of CCR which allows it to take credit on inputs or input services used for manufacture/production of dutiable goods by it. There is no provision under which the Cenvat credit can be availed on the inputs or input services which are used by a sister unit with a separate central excise registration; (b) The respondent's contention that the supply of electricity to its sister unit is not sale has no bearing in this case. It is immaterial whether the goods produced (electricity in this case) is supplied free of cost or sold to its sister unit. There is no distinction between the inputs or input services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i-III [2009 (240) ELT 641 (SC) ]. It has been held by the Supreme Court in paragraph 20 of this as follows: "20. To sum up, we hold that the definition of "input" brings within its fold, inputs used for generation of electricity or steam, provided such electricity or steam is used within the factory of production for manufacture of final products or for any other purpose. The important point to be noted is that, in the present case, excess electricity has been cleared by the assessee at the agreed rate from time to time in favour of its joint ventures, vendors etc. for a price and has also cleared such electricity in favour of the grid for distribution. To that extent, in our view, assessee was not entitled to CENVAT credit. In short, ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td [2018 (16) GSTL 196 (Raj.)]; 9. He also submits that the as show cause notice was issued on 29.11.2016 covering the period December 2011 to March 2016 a large portion of the demand is beyond the normal period of limitation and, therefore, in the absence of evidence of fraud or collusion or willful mis-statement or suppression of facts or violation of Act or Rules with an intent to evade payment of duty, the demand cannot be sustained. He, therefore, prays that the Revenue's appeal may be dismissed. 10. We have considered the arguments on both sides and perused the records. 11. We find that the case of the Revenue is that as per CCR, CENVAT credit can only be allowed on the duty paid on inputs and service tax paid on input services. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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