2009 (9) TMI 471

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....assisted by B.B. Agrawal, Jt. CDR, for the Respondent. [Order]. - Heard both sides. 2. The Appellant filed this Appeal against the impugned Order whereby pro-rata credit has been disallowed in respect of inputs used in the captive power plant. Part of the electricity generated is supplied to residential premises and sold to M/s. NESCO. Case of the Revenue is that the Appellant availed credit....

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....ly used for the manufacturing operation in the factory and some portion of the electricity is used in the Company's township/residential colony and some part is sold. Contention is that as the boiler is required to cool down the temperature of gases emitted from the kiln, certain chemicals are used in the boiler. Therefore, it cannot be said that the chemicals used in the boiler are used entirely ....

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.... used in or in relation to manufacture of final product; therefore, proportionate credit in respect of the duty paid on inputs used in the captive power plant for generation of electricity is not admissible. 5. In reply, the Appellant tried to distinguish their case from the facts in the case of Maruti Suzuki (supra). 6. I find in the present case that as per the affidavit filed by the Appel....

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....Court in the case of Raillis India Ltd. (supra). The Hon'ble High Court held that in case a common input is used in the manufacture of dutiable and exempted products, the manufacturer is not liable to pay duty as per the provisions of Rule 57CC of the erstwhile Central Excise 1944 in respect of the waste. I find that in the present case, Revenue is asking for reversal of credit in respect of the i....