https://www.taxtmi.com/caselaws?id=763018 Cenvat credit on common inputs and input services used for captive power generation is available only to the extent the resulting electricity is consumed within the factory for manufacture. Credit attributable to electricity wheeled out or sold outside the factory is not admissible because the nexus with manufacture is broken for that portion. The decision also states that non-compliance with the prescribed Rule 6 mechanism does not, by itself, defeat the substantive entitlement to proportionate reversal. Any demand and penalty must be based on the actual credit relatable to the disputed electricity, not on a flat percentage of the value of wheeled-out electricity; the correct reversable amount must be determined first. en-us Wed, 11 Dec 2024 00:00:00 +0530 Thu, 12 Dec 2024 08:55:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=763018 Cenvat credit on common inputs and input services used for captive power generation is available only to the extent the resulting electricity is consumed within the factory for manufacture. Credit attributable to electricity wheeled out or sold outside the factory is not admissible because the nexus with manufacture is broken for that portion. The decision also states that non-compliance with the prescribed Rule 6 mechanism does not, by itself, defeat the substantive entitlement to proportionate reversal. Any demand and penalty must be based on the actual credit relatable to the disputed electricity, not on a flat percentage of the value of wheeled-out electricity; the correct reversable amount must be determined first. Case-Laws Central Excise Wed, 11 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=763018