2007 (10) TMI 111

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....his order relied upon the decision of the Tribunal in the case of SAIL Ltd. -2001 (130) E.L.T. 459 (Tri.). 2. The applicants' submission is that subsequent to the decision in the above order, the Larger Bench of the Tribunal has in the case of Gujarat Narmada Fertilizers Co. Ltd. v. C.C.E. - 2007 (208) E.L.T. 342 (Tri.-LB) allowed Cenvat credit on fuel which is used in the exempted goods, observing that for availing Cenvat credit on fuel only requirement is the use of fuel in the factory premises which also is the fact in their own case as fuel has been undisputedly used in their factory premises. Similarly Gujarat High Court has in the case of Commissioner v.Gujarat Narmada Fertilizers Co. Ltd. - 2006 (193) E L T 136 (Guj) allowed credi....

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....ame effect. Gujarat High Court decision in the case of Gujarat Narmada Fertilisers Co. Ltd. also referred to Rule 57AB and stated that under these rules there is no requirement of maintaining separate account. I also find that similar issue come up for consideration by the Bombay High Court in the case of Indorama Synthetics in Civil Appeal No. 30/2006 in which case also a plea was taken that electricity supplied to the residential complex situated within the factory premises would be covered within the meaning of the words "any other purchase" set out in Rule 57B(iv) of the Central Excise Rules, 1944 and consequently credit of duty paid on inputs namely fuel, oil used in generation of electrical supply to the residential complex would be a....

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....s 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 credit of duty paid on the furnace oil used in the generation of electricity supplied to the residential complexes cannot be faulted. The decision of the....