2016 (7) TMI 497

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....sister Unit (M/s. OPG Energy Pvt. Ltd.) situated in the adjacent premises having common entrance.  The power produced by the sister Unit is mostly consumed by the appellants.  The present dispute is relating to eligibility of Cenvat credit on capital goods (steam boilers and other equipments) for the appellants.  The appellant procured these capital equipments on payment and these were installed for the purpose of generation of electricity by heat energy recovery which is exhausted by the three natural gas fired generator sets already working.  2. The case of the Revenue is that these capital goods are becoming part of the existing generator sets which belong to another legal entity (M/s. OPG Energy Pvt. Ltd.) and hence....

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.... that the usage of capital goods in the factory premises of the appellant is a requirement in terms of the above mentioned rule. 5. We have heard both sides and examined the appeal records.  6. The short question for decision is whether or not the appellants are eligible for Cenvat credit on capital goods in respect of boilers and others procured by the appellant and used for generation of electricity using the waste heat recovery process of already existing generator sets in the premises of the sister Unit.  The admitted facts of the case are that the capital goods have been procured on payment of duty by the appellants.  They have been put into use for generation of electricity in Waste Heat Recovery System.  The ele....