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of <h1>Tribunal grants Cenvat Credit for factory & mines, denies for residential colony, waives penalties</h1> <h3>ULTRA TECH CEMENT LTD. Versus COMMISSIONER OF C. EX., BHAVNAGAR</h3> The Tribunal allowed the appellant's appeal regarding the denial of Cenvat Credit on electricity used in the jetty and mines, considering the jetty as ... - Issues involved: Denial of Cenvat Credit on electricity used in residential colony, mines, and jetty; imposition of penalties for the respective periods.Denial of Cenvat Credit on Electricity Usage:The appellant's Cenvat Credit on Naptha and Furnace Oil utilized in manufacturing electricity was denied for the electricity used in the residential colony, mines, and jetty. The total demand and penalties were specified for different periods.Appellant's Arguments:The appellant's advocate argued that previous Tribunal decisions favored the appellant regarding Cenvat Credit for capital goods used in the jetty, citing the jetty as part of the factory. Reference was made to a Supreme Court decision regarding Cenvat Credit for explosives and oils used in mines. It was acknowledged that a proportionate Cenvat credit reversal was due for the residential colony. Regarding penalties, it was highlighted that previous Tribunal decisions did not impose penalties in similar cases.Respondent's Arguments:The SDR relied on a Supreme Court case to argue that electricity used in the jetty was not related to manufacturing and that mines were not part of the factory, thus disqualifying Cenvat Credit. It was alleged that the appellant concealed information about electricity usage in residential colony, mines, and jetty to avoid credit reversal, justifying the penalties and extended period invocation.Tribunal's Decision:The Tribunal determined that the jetty was part of the factory, allowing Cenvat Credit for electricity usage. Following the Supreme Court's decision, Cenvat Credit for mines' inputs was approved. However, Cenvat Credit for electricity in the residential colony was disallowed. Penalties were waived based on the Supreme Court's stance on Cenvat Credit Rule amendments and conflicting tribunal decisions.Final Verdict:The demand for duty related to Cenvat Credit on electricity used in the residential colony was disallowed, while the appeal was allowed for other demands.
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