2009 (12) TMI 824

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....inath Thete, SDR, for the Respondent. ORDER In the impugned order, the Cenvat Credit availed by the appellant on Naptha and Furnace Oil utilized in manufacture of electricity has been denied to the extent of electricity used in the residential colony, mines and jetty. Total demand of Rs. 95,33,686/- relates to the period from April, 2001 to Sept., 2004 and an amount of Rs. 22,68,158/- demand....

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.... Court in the case of Vikram Cement Ltd. as reported in 2006 (197) E.L.T. 145 (S.C.), has held that where explosives, lubricating oils are used in the mines, Cenvat credit has to be allowed. He also submitted that in this case, mines are captive mines only and therefore the issue is squarely covered by the decision of the Hon'ble Supreme Court. As regards residential colony, in view of several pre....

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....the factory. It was also his submission that mines are also not part of the factory. Therefore, the decision of Hon'ble Supreme Court in Vikram Cement case, would not be applicable and since the power has been wheeled out of the factory for use in mines, jetty and residential colony, appellants are not eligible for Cenvat credit to the extent of electricity used in mines/residential colony/jetty. ....

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....gards mines, we find that the decision of Hon'ble Supreme Court in case of Vikram Cement cited above applies and further we have also applied ratio of the same judgment in the case of same appellant in our Order No. S/2614-2615/WZB/AHD/08, dated 25-11-08. Therefore, we hold that the appellants are eligible for Cenvat Credit in respect of the inputs used in the electricity used in the mines also. A....