2008 (2) TMI 162

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....al is regarding the availment of Cenvat Credit on the capital goods used for their Co-Generation Plant. According to the department, the Co-Generation Power Plant produces electricity which is not excisable and therefore in terms of the Cenvat Credit Rules, when the capital goods are used exclusively for the manufacture of exempted products the credit is not admissible. Taking this view proceedings were initiated against the appellants and the Adjudicating Authority disallowed credit to the tune of Rs 2,98,93,566/- under proviso to Section 11A of the Central Excise Act. And he demanded interest on the above amount in terms of Rule 12 of the Cenvat Credit Rules, 2002. Further, he imposed equal penalty on the appellants. The appellants are hi....

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....on the capital goods, used for generating electric power. 5. The learned Advocate relied on the following case laws: Cenvat - Capital goods used for generation of electricity - Part of excess electricity so generated sold outside for monetary consideration - Entire Cenvat Credit availed on capital goods used for generation of electricity which is not excisable and part of which is produced sold outside, cannot be denied - Rule 6(4) of the Cenvat Credit Rules, 2004. (a) CCE vs. Solaris Chemtech Ltd. 2007 (81) RLT 681 (SC) (b) Sudalagunta Sugars Ltd. vs. CCE, Tirupathi 2006 (199) ELT 760 (T) (c) Kothari Sugars & Chemicals Ltd. vs. CCE 2006 (196) ELT 35 (T) (d) Ballarpur Industries Ltd. vs. CCE, Belgaum 2000 (116) ELT 312 (Tr....

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....                                                       ____________ This is to intimate that we are erecting Co-Gen Power Plant within the factory for use of power generated, for the manufacture of sugar and molasses (By-product). The excess power generated is to be supplied outside to the A.P. Transco. This is for your kind information. Thanking You,   Yours faithfully, Chief General Manager Cc: Superintendent, Central Excise Nizamabad Division, Ni....