2015 (10) TMI 2453

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....ad availed Cenvat Credit of Central Excise duty paid on the furnace oil, which was used for manufacture of steam. Some part of the steam produced was utilised in canteen and in laundry. It is a case of the revenue that the steam utilised for non-productive purpose cannot be considered as being used in or in relation to manufacture of any final products. Coming to such a conclusion both the lower authorities have held against the appellant and confirmed the demands with interest and also imposed equivalent penalties. 3. Learned Counsel would draw our attention to the facts of the case and submit that the utilization of steam generated for the purposes of cleaning of vessels and used in laundry for cleaning of the uniform which was used by t....

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....oductive use in canteen and laundry or otherwise. 6.1 It is undisputed that the Cenvat Credit on furnace oil is eligible to be availed by the appellant as they are utilising the steam produced by using furnace oil for manufacturing of final products in factory premises. It is also undisputed that some part of the steam is utilised in canteen and laundry. 6.2 In our considered view the requirement of a canteen in the factory is statutorily mandated in the factories act, the cleaning of the utensils in the canteen for providing hygienic food cannot be disputed by any one. Again, using of clean uniform in the course of manufacturing of final products cannot also be disputed as unwanted expenses. On this factual matrix, we find that the steam....

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.... 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 finding recorded by the Tribunal that the assessee is not entitled to the....