https://www.taxtmi.com/caselaws?id=33910 Cenvat credit on naphtha used to generate electricity was held inadmissible where the electricity was sold or supplied outside the factory, because the credit scheme protects only input use that results in electricity consumed within the factory of production. Authorities and decisions relating to captive consumption or in-factory use were distinguished on that basis. On penalty, the dispute was treated as one of statutory interpretation and scope of admissible input use, so penal consequences were not justified. Duty demand and interest were sustained, while penalties were annulled, giving the assessee only partial relief. en-us Fri, 20 Jun 2008 00:00:00 +0530 Mon, 22 Jun 2009 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=33910 Cenvat credit on naphtha used to generate electricity was held inadmissible where the electricity was sold or supplied outside the factory, because the credit scheme protects only input use that results in electricity consumed within the factory of production. Authorities and decisions relating to captive consumption or in-factory use were distinguished on that basis. On penalty, the dispute was treated as one of statutory interpretation and scope of admissible input use, so penal consequences were not justified. Duty demand and interest were sustained, while penalties were annulled, giving the assessee only partial relief. Case-Laws Central Excise Fri, 20 Jun 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=33910