Cenvat credit on fuel for electricity is limited to manufacturing use; non-manufacturing consumption within premises disqualifies credit.

Cenvat credit on fuel used to generate electricity or steam is available only where the resulting energy has a nexus with manufacture of final products or an activity connected with or related to such manufacture. Electricity supplied for residential complexes or other non-manufacturing uses within the factory premises does not meet that test, so the cited exceptions for fuel records were inapplicable. On that basis, no apparent mistake or patent error was shown in the Tribunal's earlier order, and rectification was not warranted.

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Issues: Whether any apparent mistake existed in the Tribunal's earlier order so as to justify rectification, and whether Cenvat credit on fuel used for generating steam or electricity for non-manufacturing use within the factory premises was admissible.

Analysis: The relied-on decisions were held to be inapplicable because they dealt with the limited exception for fuel under the Cenvat framework where separate records were not required for fuel used in both dutiable and exempted products. The governing principle applied was that credit on fuel or inputs used to generate electricity is available only when the electricity has a nexus with the manufacture of final products or with an activity connected with or related to such manufacture. Electricity supplied to residential complexes or other non-manufacturing uses, even if situated within the licensed premises, does not satisfy that test. On that basis, no patent error was found in the earlier order.

Conclusion: No rectifiable mistake was established, and the application was not maintainable on the ground urged.

Ratio Decidendi: Cenvat credit on fuel used to generate electricity or steam is admissible only when the resulting energy is used in or in relation to the manufacture of final products, and not for wholly unconnected non-manufacturing purposes within the factory premises.

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