TaxTMI 
TaxTMI 
TaxTMI 
2014 (9) TMI 686
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.... in the factory premises for manufacture of dutiable final products. Appellant is using duty paid furnace oil in the generation of steam in the boiler and is availing CENVAT Credit of the duty paid on the furnace oil. A part of the steam so generated was also supplied to their adjoining sister concern M/s Alkem Laboratories Ltd. It is the case of the Revenue that proportionate CENVAT Credit of furnace oil used in the generation of steam supplied to appellants adjoining sister concern is not admissible. Demand so raised was confirmed by the adjudicating authority, along with interest, and equivalent penalty also imposed, which was upheld by first appellate authority under OIA dt.28.03.2008 against which the present appeal is filed. 2. Shri....
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.... Apex Court in the case of Maruti Suzuki Ltd Vs CCE Delhi-III (supra). It was his case that as per the law laid down by Apex Court in the case of Maruti Suzuki Ltd Vs CCE Delhi-III (supra) appellant was not eligible to CENVAT Credit with respect to fuel used in generation of steam supplied to the sister concern. Ld.A.R. also argues that ratio laid by this Bench in the case of Sanghi Industries Ltd Vs CCE Rajkot [2014 (302) ELT 564 (Tri-Ahmd)] and Bilag Industries [2014 (7) TM1 1073-CESTAD-AHD] is not applicable to the facts & circumstances of the present appeal, as it is not known whether the sister concern, to whom steam is supplied has cleared the final products on payment of Central Excise duty or not. 4. Heard both sides and perused th....
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....i I vs M/s SRF [2013 (298)ELT 521 (Mad.)] where the following observations were made by Madras High Court in Para 17 & 18: 17. The Learned Counsel for the assessee distinguished the judgment of the Supreme Court in Maruti Suzuki Ltd vs Commissioner of Central Excise, Delhi III (2009) 9 SCC 193 = 2009(240)ELT 641 (SC) on the ground that the issue in the said judgment relates to the entitlement of credit on eligible inputs utilized in generation of electricity to the extent to which excess electricity cleared at the contractual rates in favour of sister units, vendors, joint ventures etc., which was sold at price. However, in the case of hand, electricity wa....
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....job worker for further processing, testing, repair, re-conditioning, or for the manufacture of intermediate goods necessary for the manufacture of final products or any other purpose, and it is established from the records, challans or memos or any other document produced by the manufacturer or provider of output service taking the CENVAT credit that the goods are received back in the factory within one hundred and eighty days of their being sent to a job worker and if the inputs or the capital goods are not received back within one hundred eighty days, the manufacturer or provider of output service shall pay an amount equivalent to the CENVAT credit attributable to the inputs or capital goods by debiting the CENVAT credit or otherwise, but....
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....wer plant has been held and accepted by the adjudicating authority to be a job worker of the clinker unit. On the same analogy grinding unit could also act as a job worker of clinker unit for manufacturing cement. In such situations both the clinker and the electricity supplied to the grinding unit by the power plant can be treated as 'inputs' supplied to job worker (grinding unit) for which credit has been taken by the clinker unit. As all the registered units belong to the same group of companies, therefore, what has not been done by the appellant is not following properly the prescribed procedures. Alternately, appellant could have sold proportionate electricity generating fuel to its grinding unit by reversing proportionate Cenvat credi....