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

Cenvat credit on fuels: credit admissible for furnace oil used in captive electricity generation despite exclusions for diesel and petrol.
Rule 2(k) treats goods used for generation of electricity for captive use as inputs but excludes light diesel oil, high speed diesel oil and motor spirit; fuels not so excluded, for example furnace oil, qualify as inputs and attract admissible CENVAT credit when used for captive electricity generation.