2012 (5) TMI 170

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....ional Commissioner (A R) Per: S S Kang: Heard both sides. 2. Applicant filed this application for waiver of pre-deposit of duty of Rs.2,96,66,481/-, interest and penalty. 3. Out of above mentioned amount of duty demand of Rs.2,88,97,841/- is confirmed after denying credit in respect of the capital goods which are used in the captive power plant on the ground that part of electricity ge....

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....lectricity which is also used in the factory production. The applicant relied upon the decision of Hon'ble High Court of Chattisgarh in the case of Union of India vs. HEG Ltd. reported in 2012 (275) ELT 316 (Chattisgarh) whereby in a similar situation the Hon'ble High Court held that as per the provisions of Rule 6(4) of the CENVAT Credit Rules, the credit cannot be denied in respect of the capita....

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....ct of the other demand, the contention is that the items in question are not capital goods. Therefore, the credit is rightly denied. 7. We find that the admitted facts of the case are that credit has been availed on the capital goods which are used in the captive power plant and the electricity so generated in the power plant is used in or in relation to the manufacture of finished goods and ce....

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....t exclusively for the manufacture of exempted goods. 8. Further, we find that the Hon'ble High Court of Chattisgarh in the case of Union of India vs. HEG Ltd. (supra) where the demand is confirmed on the same grounds held as under:- "Plain reading of Rule 6(4) of the Rules makes it abundantly clear that Cenvat Credit in respect of capital goods shall not be allowed on capital goods which are....