2007 (11) TMI 139

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....p; 1.3       The Appeal No.E/192/2007 is against the order of the Commissioner No. 28/BVR/Commissioner/2006 dt.27.10.06, by which an amount of Rs.1,29,783/- was sought to be denied as credit and  penalty of Rs 1,29,784/- was imposed.      2.    Heard both sides.     3.       The relevant facts, in brief, are as follows:     a)      The appellant is a manufacturer of cement and they have their captive mines adjacent to their factory.  They used furnace oil as fuel in generating electricity and the electricity so generated by them was being used partly in their factory and partly in the....

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.....   4.1.       The learned advocate for the appellant submits that their mines are a captive mines; the entire limestones mined  are used only in their factory; the reasoning adopted by the Commissioner to treat the activities of crusher and conveyer system as part of the manufacturing activities shall hold good for the activities of transformer also and therefore the disallowance of credit is incorrect and the imposition of penalty is also not proper.   4.2       He relies on the Supreme Court's judgment in the case of Vikram Cement reported in 2006 (197) ELT 145 in support of his contention that when the mines cater exclusively to the factory, then the duty paid on the....

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....elating to manufacture of cement. 5.3       He relies on the decision of the Hon'ble Supreme Court in case of Vikram Cement 2006 (194) ELT 3 (SC).  Since the role of the transformer in the mines in the present case, is not relatable to the manufacturing of cement, the electricity used for the same cannot be treated as credit on input used in the electricity.     5.4      He also relies on the decision of the Hon'ble High Court in case of  Indo Rama Synthetics Ltd, in support of his contention that for the eligibility of credit is linked to use of electricity for excisable activity.    5.5     He also relies on the decision of th....