https://www.taxtmi.com/caselaws?id=797874 CENVAT credit is admissible for duty-paid capital goods received in a manufacturer's factory and used to install a captive cogeneration power plant essential to producing finished goods. Rule 2(a) requires use of specified capital goods in the factory, not ownership by the manufacturer at receipt or direct procurement in its own name. Procurement through an EPC contractor does not break the nexus between the goods and manufacture where invoices show the manufacturer as consignee. Subsequent incorporation of the goods into an immovable plant also does not bar credit. Recovery, interest and penalty based on denial of such credit are unsustainable. en-us Wed, 05 Aug 2026 00:00:00 +0530 Sat, 29 Aug 2026 14:35:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=797874 CENVAT credit is admissible for duty-paid capital goods received in a manufacturer's factory and used to install a captive cogeneration power plant essential to producing finished goods. Rule 2(a) requires use of specified capital goods in the factory, not ownership by the manufacturer at receipt or direct procurement in its own name. Procurement through an EPC contractor does not break the nexus between the goods and manufacture where invoices show the manufacturer as consignee. Subsequent incorporation of the goods into an immovable plant also does not bar credit. Recovery, interest and penalty based on denial of such credit are unsustainable. Case-Laws Central Excise Wed, 05 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=797874