2006 (2) TMI 452

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....mar, JDR, for the Respondent. [Order]. - Heard Shri S.P. Majumadar, ld. Advocate on the appeal filed by the appellants. This case arises against the Order-in-Appeal No. 10/B-11/2004 dated 27-2-2004 passed by the Commr. (Appeals) of Central Excise & Customs, Bhubaneswar. A demand of Rs. 29,931/- was confirmed under Rule 12 of Cenvat Credit Rules, 2001 and an equal amount of penalty have been ....

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....exempted goods nor an excisable goods. As such, the provisions of this Rule cannot be applied in their case. He also draws my attention to the Notification No. 11/95-C.E. (N.T.), dated 16-3-95 wherein under Rule 57A, the inputs which is used for generation of electricity, used within the factory of production for manufacture of final products or for any other purposes, have been eligible for Modva....

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....al)] held that diversion of excess power from captive power plant imported duty free for generation of power for manufacture of export goods under Notification No. 13/81-Cus, to Domestic Tariff Area does not violate the conditions of Notification when the surplus power so generated could not be stored on account of its very nature and, as such, has to be transmitted to the grid for pooling. Furthe....

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....cise Rules. This is also not disputed that more than 98% of the electricity produced by the appellants is used in their own captive consumption and only small portion is sent to grid when it is a case of excess power. The Notification No. 11/95 nowhere speaks that 100% electricity has to be used in the captive power because otherwise the words "or for any other purpose" should have not been there.....