https://www.taxtmi.com/caselaws?id=213222 CENVAT credit on capital goods used in a captive power plant cannot be denied merely because part of the electricity generated is sold outside, where the same plant also supplies power used in manufacturing final products in the factory. Rule 6(4) of the CENVAT Credit Rules, 2004 bars credit only when capital goods are used exclusively for exempted goods, so mixed use for captive consumption and external sale does not attract the bar. On the remaining dispute concerning items treated as not capital goods, the deposit already made and reversals with interest were treated as sufficient. Pre-deposit of duty, interest and penalty was therefore waived and recovery stayed pending appeal. en-us Fri, 02 Mar 2012 00:00:00 +0530 Mon, 14 Jan 2013 15:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=213222 CENVAT credit on capital goods used in a captive power plant cannot be denied merely because part of the electricity generated is sold outside, where the same plant also supplies power used in manufacturing final products in the factory. Rule 6(4) of the CENVAT Credit Rules, 2004 bars credit only when capital goods are used exclusively for exempted goods, so mixed use for captive consumption and external sale does not attract the bar. On the remaining dispute concerning items treated as not capital goods, the deposit already made and reversals with interest were treated as sufficient. Pre-deposit of duty, interest and penalty was therefore waived and recovery stayed pending appeal. Case-Laws Central Excise Fri, 02 Mar 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=213222