Tribunal allows cenvat credit on power transferred to sister concern. Revenue appeal dismissed.

The Tribunal upheld the order-in-original allowing the respondent-assessee to avail cenvat credit on power generated and transferred to their sister concern, following precedent that credit on input services used in electricity generation for sister units producing dutiable goods is permissible. The appeal by the Revenue was dismissed, along with the Cross-objection by the appellant.

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Issues:
Appeal against order-in-original regarding cenvat credit on power generated and transferred to sister concern.

Analysis:
The appeal was filed by the Revenue against the order-in-original passed by the Commissioner of Central Excise, Jaipur-II. The respondent-assessee was manufacturing Lead, Zinc ores, etc., and availing cenvat credit on common inputs and input services used in the captive power plant. The power generated was used captively, transferred to their sister concern, and excess power was sold to M/s Ajmer Vidyut Vitran Nigam Limited. The dispute revolved around the cenvat credit on the power generated and transferred to the sister concern. The Tribunal referred to a previous case where it was observed that the appellant is eligible to avail the credit on input services used in the generation of electricity transferred to sister units engaged in manufacturing dutiable final products. The Tribunal found no reason to interfere with the impugned order and sustained it. Consequently, the appeal filed by the department was dismissed, and the Cross-objection filed by the appellant was also dismissed.

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