TaxTMI 
TaxTMI 
2015 (7) TMI 546
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....is clear from the photograph placed on record, the co-generation power plant is connected through overhead conveyer by which bagasse is transferred to co-generation power plant which is used for generation of electricity. The electricity generated is used in the sugar mill for its entire operation and surplus electricity was being sold to the state electricity board. 1.2 The dispute in this case is about eligibility for cenvat credit of various items of capital goods received by the appellant for setting up co-generation power plant and also various input service covered by Rule 6 (5) of Cenvat Credit Rules, 2004 which was utilized in respect of co-generation power plant. The period of dispute in the present case is from January, 2004 to October, 2006, July,2010 to March, 2011 and April, 2012 to March, 2013. 1.3 Another issue in this group of appeals is whether common central excise registration could be granted under Rule 9 of Central Excise Rules, 2002 to the sugar mill as well as co-generation power plant. The appellant applied for common central excise registration claiming the co-generation plant is part of the factory premises (sugar mill). The Assistant Commissioner re....
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....he Assistant Commissioner passed 10 orders confirming the capital goods credit demand/input service demand of different amounts and these orders were upheld by the Commissioner (Appeals). 2. Heard both sides. 3. Shri B.L.Narsimhan and Shri R.Krishnan, Advocates, the learned Counsels representing the appellant, pleaded that the cenvat credit would be admissible in respect of capital goods which are used in the factory of the manufacturer receiving them for the manufacture of final products, that co-generation power plant in which the capital goods, in question, have been used and in respect of which the services of installation, erection and commissioning of plant and machinery, and repair and maintenance of plant covered by rule 6 (5) of cenvat Credit Rules ,2004 have been used, is part of sugar mill, that just because of sugar mill and co-generation power plant located opposite the factory are separated by a public road, the two cannot be treated as two different factories premises, that in terms of Boards supplementary instructions issued under Rule 31 of Central Excise Rules, 2002, separate registration is required in respect of separate premises, except in cases where tw....
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....s of this case, that just because a part of electricity was sold to State Electricity Board, cenvat credit cannot be denied, that Hon'ble Chhattisgarh High Court in the case of Union of India vs. HEG Ltd.-2012 (275) ELT 316 (Chhattisgarh) has held that even when the capital goods were used in the power plant when major portion of electricity so generated was sold outside through distribution lines of MPEB and only a part of electricity generated in the factory for manufacture of sponge iron, which is not exempt, the credit in respect of capital goods used in the power plant would be admissible, that the Tribunal in the case Nizam Deccam Sugars Ltd., Hyderabad vs. CCE, Hyderabad-2008-TIOL-764-CESTAT-BANG has held that the credit in respect of the capital goods used in the co-generation plant of sugar mill, cannot be denied, even if during the off season period, the power generated is sold to the Andhra Pradesh Electricity Power Grid in terms of the agreement entered into between the sugar mill and the Electricity Board, that as regards the credit in respect of services of installation, erection and commissioning of plant and machinery and repair and maintenance of plant, etc. covere....
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....es except in cases where two or more premises are actually part of the same factory (where processes are interlinked), but are segregated by public road, canal, or railway-line. In para 3.2 of supplementary instructions examples have been given where two or premises can be treated as part of the same factory and these examples are, (a) interlinked process, (b) products manufactured/produced in one premises are substantially used in other premises for manufacture of final products, (c) large number of raw materials are common and received/proposed to be received commonly for both/ all the premises, (d) common electricity supply, (e) there is common labour/work force, (f) common administration/work management, (g) common sales tax registration and assessment, (h) common income tax assessment and (h) any other factor as may be indicative of inter-linkage of the manufacturing process. In our view, when sugar mill and co-generation power plant are connected through overhead conveyer by which bagasse generated in the sugar mill is transferred to co-generation power plant where it is used in the boiler for generation of electricity and the electricity generated in the co-generation power ....