2009 (9) TMI 798

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....ndent. ORDER In one of the appeals, the challenge is against a demand of over Rs. 2.59 crores in terms of Rule 6(3)(b) of the Cenvat Credit Rules, 2004 for the period 2005 to April 2007. In the other appeal, the challenge is against a demand of over Rs. 1.3 crores in terms of the same provision of law for the period November, 2007 to April, 2008. The impugned demands are on the premise that the ....

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....ut prescribing any rate of duty would not make it an excisable product and, for that matter, there is no question of electrical energy being an "exempted product" for purposes of Rule 6(3)(b) ibid. It has also been argued, that electricity does not satisfy the definition of "exempted goods" given under Rule 2(d) of the Cenvat Credit Rules, 2004. This definition reads thus :- " 'exempted goods' me....

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....ty should be either chargeable to "Nil" rate of duty or should be exempted from whole of the duty of excise leviable thereon. Admittedly, "nil" rate of duty was not prescribed for electricity during the period of dispute, nor was any rate of duty at all prescribed for it in the Tariff Schedule. The Revenue has no case that any exemption Notification existed during such period granting exemption fr....

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.... in Commissioner of Central Excise v. Gujarat Narmada Fertilizers Co. Ltd. - 2009 (240) E.L.T. 661 (S.C.) = 2009-TIOL-96-SC-CX, wherein, on a similar set of facts, the Apex Court underlined the need for reversal of cenvat credit to the extent of electricity cleared to the Grid and to the Township for purposes other than manufacture of dutiable goods within the factory. It has been claimed that pro....