https://www.taxtmi.com/caselaws?id=244918 Modvat/Cenvat credit on inputs used to generate electricity was held admissible where the electricity was supplied within the same factory premises to the chemical plant and pump house, because separate registrations did not by themselves establish separate factories and the common manufacturing nexus was maintained. Credit was therefore retained for intra-factory use linked to manufacture of an intermediate product. By contrast, electricity supplied to the residential colony, club and hospital was outside the manufacturing process and did not qualify for input credit. Penalty under Section 11AC was not sustained, as the dispute involved interpretation and conflicting views, and was dropped. en-us Wed, 10 Apr 2013 00:00:00 +0530 Thu, 13 Mar 2014 13:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=244918 Modvat/Cenvat credit on inputs used to generate electricity was held admissible where the electricity was supplied within the same factory premises to the chemical plant and pump house, because separate registrations did not by themselves establish separate factories and the common manufacturing nexus was maintained. Credit was therefore retained for intra-factory use linked to manufacture of an intermediate product. By contrast, electricity supplied to the residential colony, club and hospital was outside the manufacturing process and did not qualify for input credit. Penalty under Section 11AC was not sustained, as the dispute involved interpretation and conflicting views, and was dropped. Case-Laws Central Excise Wed, 10 Apr 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=244918