2007 (6) TMI 451

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....During the period May, 1996 to December, 1999, they had taken capital goods credit under Rule 51Q of the Central Excise Rules, 1944 on certain parts and components used for the manufacture of the co-generation plant or for the maintenance of the plant. The department issued show-cause notices from time to time denying the credit to the appellants on the ground that the electricity generated by the co-generation plant was not wholly consumed within the sugar factory. The show-cause notices took the view that, as part of the electricity so generated was supplied out of the factory to the TNEB grid, the availment of the above credit was hit by the provisions of sub-rule (2) of Rule 57R. The notices also proposed penalties on the party. The ori....

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....entire quantity of electricity generated by the plant should have been captively consumed in the manufacture of sugar. The appellants are contesting this stand of the Revenue on the strength of case law. Their Consultant has cited the following decisions in support of these appeals:- (i)      Commissioner of Central Excise, Raipur v. H.E.G. Ltd. [2004 (177) E.L.T. 605 (Tri.-Del.)]. (ii)    Visakhapatnam Steel Plant v. Commissioner of Central Excise, Visakhapatnam [2004 (177) E.L.T. 507 (Tri.-Bang.)]. (iii)   Commissioner of Central Excise, Pondicherry v. EID Parry (India) Ltd. [Final Order No. 699-701/07, dated 12-6-2007 in Appeal Nos. E/78 to 80/2004] - 2007 (217) E.L.T. 81 (Tribun....