TaxTMI 
TaxTMI 
2016 (1) TMI 516
X X X X Extracts X X X X
X X X X Extracts X X X X
....athariya, Jaunpur (UP). The appellant installed a power plant of 40 MW capacity at plot No. A-42 to 47, SIDA, Sathariya, Jaunpur. Admittedly, the said power plant is outside the factory premises i.e. 250 mts. Away from manufacturing plant. The said power plant is installed for generation of electricity which in turn is to be used by the appellant for manufacturing of MS ingots, bars and TMT bars. 3. The officers of Anti-evasion wing of Central Excise department visited the factory premises of the appellant on 17.1.2012 and 18.1.2012 and verified the records relating to cenvat credit in respect of power plant. During the investigation, it was revealed that the appellant has availed cenvat credit on imported capital goods namely, boiler pa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....(Tri-Del)]. He further submits that appellant has availed cenvat credit on 28.11.2011 and at the time of availment of cenvat credit, the definition as per Rule 2 (a) of Cenvat Credit Rules, 2004 was in force, therefore, there is no bar under the provisions of Cenvat Credit Rules, 2004 to take cenvat credit on these goods. Therefore, the impugned order is to be set aside. 5. On the other hand, learned AR opposed the contention of the learned Counsel and submits that it is admitted fact that the goods in question have been procured prior to 01.04.2011 i.e. before the Notification No. 3/11 dated 1.3.11 which defines "capital goods" for availment of cenvat credit, and the said provision was made applicable retrospectively. Therefore, for the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o the extent stated in Clauses (i) to (vi) read with the Explanation. Thus Clause (i) provides for inputs which are manufactured and used within the factory of production. Paints, fuel, packing materials and accessories are also treated as inputs under clauses (ii), (iii), (v) and (iv) without any requirement for user within the factory. Clause (iv) provides for credit on inputs used for generation of electricity or steam used for manufacture of the final products or for any other purposes "within the factory of production". It appears to us on a plain reading of the clause that the phrase "within the factory of production" means only such generation of electricity or steam which is used within the factory would qualify as an intermediate p....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... such mines will not be available to the concerned assessee under the appropriate Modvat/Cenvat Rules. In order to get a clear finding on the issue, all the matters are remanded to the respective original authorities for decision only on the above issue." 10. Further, this Tribunal in the case of Hindalco Industries (supra) on the identical issue has observed as under:- "6. The point of dispute in this case is as to whether the inputs and capital goods used for generation of power in Renusagar Power Plant, would be eligible for Cenvat credit, even though the power plant is not located within the factory premises and it is located at distance of about 40-50 kms. from the factory. There is no dispute about the fact that though ini....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hat the Cenvat credit in respect of explosives used in the mines for blasting purpose to produce lime stone would be admissible if the mine is the captive mine and that utilization of input only within the factory premises is not necessary. In para 4 of this judgment with regard to the admissibility of Cenvat credit in respect of the inputs used for the generation of power or steam for use in the factory, the Apex Court interpreting the provisions of Rule 57B observed as under :- "It appears to us on a plain reading of the clause that the phrase "within the factory of production" means only such generation of electricity or steam which is used within the factory would qualify as an intermediate product. The utilisation of inp....
X X X X Extracts X X X X
X X X X Extracts X X X X
....plant of the appellant company, together with the cement factory of the appellant company constitute one integrated unit and it is not disputed that except of small quantity of electricity generated being used in the Renusagar township, the remaining quantity is used in the appellant's factory for production of aluminium. Therefore, the Cenvat credit in respect of capital goods and inputs used in the captive power plant located at Renusagar cannot be denied just because the power plant is located at some distance from the factory." 11. The thrust of the learned AR is on the definition of capital goods as per Rule 2A of Cenvat Credit Rules, 2004 which has been expended with effect from 01.04.2011 and there is no specific provision provide....