https://www.taxtmi.com/caselaws?id=243355 Cenvat or Modvat credit on naphtha used to generate electricity or steam is available only to the extent the resulting electricity or steam is consumed within the factory of production. Where part of the generated electricity or steam is supplied outside the factory, that portion does not qualify for full credit, and only proportionate credit tied to captive consumption is admissible. The exclusion principle applies because credit is confined to inputs used in or in relation to manufacture within the factory, and the portion cleared outside falls outside that entitlement. The order granting full credit was therefore set aside, and the matter was remitted for consideration of the remaining excluded claim. en-us Mon, 12 Sep 2011 00:00:00 +0530 Fri, 31 Jan 2014 10:39:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=243355 Cenvat or Modvat credit on naphtha used to generate electricity or steam is available only to the extent the resulting electricity or steam is consumed within the factory of production. Where part of the generated electricity or steam is supplied outside the factory, that portion does not qualify for full credit, and only proportionate credit tied to captive consumption is admissible. The exclusion principle applies because credit is confined to inputs used in or in relation to manufacture within the factory, and the portion cleared outside falls outside that entitlement. The order granting full credit was therefore set aside, and the matter was remitted for consideration of the remaining excluded claim. Case-Laws Central Excise Mon, 12 Sep 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=243355