https://www.taxtmi.com/caselaws?id=243682 Cenvat credit on furnace oil used to generate electricity is admissible only to the extent the electricity is consumed within the factory for manufacture or other in-factory purposes. Where surplus electricity is wheeled out to other units, the nexus between the input and manufacture is broken and credit is not available for that portion. Applying the controlling Supreme Court principle, the matter required reconsideration because the Tribunal had not addressed the distinction between captive use and external supply. The issue was answered against the assessee and in favour of the Revenue, with remand for fresh consideration. en-us Mon, 12 Sep 2011 00:00:00 +0530 Fri, 07 Feb 2014 19:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=243682 Cenvat credit on furnace oil used to generate electricity is admissible only to the extent the electricity is consumed within the factory for manufacture or other in-factory purposes. Where surplus electricity is wheeled out to other units, the nexus between the input and manufacture is broken and credit is not available for that portion. Applying the controlling Supreme Court principle, the matter required reconsideration because the Tribunal had not addressed the distinction between captive use and external supply. The issue was answered against the assessee and in favour of the Revenue, with remand for fresh consideration. Case-Laws Central Excise Mon, 12 Sep 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=243682