AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2012 (12) TMI 854
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....) roads/yard, administrative building, canteen/cafeteria is available to the appellant used in or in relation to the final product or for any other purpose within the factory of production as per Rule 2(k) of Cenvat Credit Rules, 2004 as held by Member (Judicial). OR (b) Whether the appellants are not entitled for exemption on that much of Naphtha attributable to electricity generated in captive power plant/co-generation plant, used for allied activities like lighting in the artillery (sic) roads/yard, administrative building, canteen/cafeteria as per Rule 2 (k) of Cenvat Credit Rules, 2004 as held by Member (Technical). 3. The contention of the appellant is that the appellants are engaged in the bus....
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....f the refinery without which the refinery would not have been able to function. Road lighting referred to the light i.e. on the roads between processing unit and the storage tanks to facilitate movement of workers and machinery in their refinery. Canteen is a statutory requirement in the factory and without such facility, refinery would not be legally permitted to function. Administrative building houses the functioning and that relates to the refinery activity and due to safety factors, the administrative offices are housed separately from the processing unit. As these are integral part of the refining process therefore the benefit of the Notification is available in respect of the Naphtha used in the generation of electricity which is use....
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....quantum of electricity which is not sued in or in relation to the manufacture of final product. Revenue also relies upon the decision of the Hon'ble Supreme Court in the case of CCE vs Solaris Chemtech Ltd reported in 2007 (214) ELT 481 (SC) and in the case of Indorama Synthetics (India) Ltd. vs CCE reported in 2009 (219) ELT 122(BOM) and the dismissal of the appeal against the decision of the Bombay High Court filed by M/s Indorama Synthetics (India) Ltd by the Hon'ble Supreme Court as reported in 2008 (226) ELT A 181. The contention is that the Hon'ble Bombay High Court in the above decision specifically held that the credit in respect of the inputs used for generation of electricity which is supplied to the residential complex is not ava....
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....xcise Rules, 1944 which are similarly worded under the Cenvat Credit Rules, 2004 held that the words any other purposes within the factory of production is also to be connected with or relation to the production of the final products. The Hon'ble High Court held as under: 18. We have carefully considered the rival submissions. The basic dispute in the present case revolves on the meaning of the word 'any other purpose' contained in Rule 57B(iv) of the Central Excise Rules, 1944 as well as similar Rule contained in the Cenvat Credit Rules, 2001 and Cenvat Credit Rules, 2002. During the period from 1997 to 2002 the electricity generated has been utilised by the assessee within the licensed premises for ....
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.... would be covered within the meaning of the word 'any other purpose' in Rule 57B(iv) of the Central Excise Rules, 1944. 21. The fact that the residential complexes are situated within the licensed premises would not entitle the assessee to avail credit of duty paid on furnace oil used in the manufacture of electricity supplied to the residential complexes. It is necessary to establish that the electricity is used for any purpose connected with or related to the production of final products. In our opinion, supply of electricity to the residential complexes situated within the factory premises are neither connected with or related to the production of the final products. In this view of the matter, we hold that the findin....
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.... the erstwhile Central Excise Rules, 1944 which provides that input means inputs used for generation of intermediate electricity used within the factory of production for manufacture of final product or for any other purposes held that the electricity generated within the factory which is supplied to the residential colony of the factory, school etc to that extent credit is not admissible. The definition of input under the Cenvat Credit Rules, 2004 is also similarly worded. In view of the above decision, I agree with the opinion of the learned Member (Technical) that the appellants are not entitled for exemption on that much of Naphtha attributable to electricity generated in captive power plant used for allied activities like lighting of r....