CCR ON FUELS USED FOR GENERATION OF ELECTRICITY

[CS RAHUL AGARWAL]

Sir/ Madam,

Can we avail cenvat credit on fuels used in generation of electricity ?

Rule 2(k) of CCR 2004 provides that CCR is admissible for inputs used in generation of electricitty, however excludes fuels & Other inflameables. So what would be the correct position in light of M/s Jindal Stainless Ltd. Versus Commissioner, Central Excise & Service Tax, Rohtak, 2015 (6) TMI 404 - CESTAT NEW DELHI

 

AI Summary

Eligibility for CENVAT Credit on Furnace Oil Confirmed Under Rule 2(k); Clarification on Notification No. 155/86 Sought. A query was raised regarding the eligibility to avail CENVAT credit on fuels used for electricity generation under Rule 2(k) of the CENVAT Credit Rules, 2004. The rule allows credit for goods used in electricity generation but excludes certain fuels. One participant clarified that while light diesel oil, high-speed diesel oil, and petrol are excluded, furnace oil is not, thus credit is available for furnace oil. Another participant sought confirmation on the applicability of Notification No. 155/86, indicating confusion about its current status. The discussion involved clarifications and confirmations on the rules and applicable notifications.