2017 (5) TMI 952

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....ules, 2004. The dispute in the present appeal is with reference to liability of the appellant to pay Central Excise duty on Pitch Creosote Mixture (PCM) arising in their manufacturing process and cleared to the captive power plant, located within their factory premises. The Revenue held a view that the captive power plant is a separate legal entity, a joint venture with 50-50 participation between the appellant and M/s NTPC. Such clearance of raw material/fuel to the power plant, which is a separate legal entity, was held to be not covered under the category of captive consumption and the provisions of Cenvat Credit Rules also was held to be not applicable. 2. The present impugned order was passed as per the directions of the Tribunal by a....

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....entity and the PCM is cleared on consideration, by way of book adjustment between the parties. As such, it cannot be said that PCM is an input used by the appellant in the generation of electricity by them. Accordingly, he supported the findings of the Original Authority. 5. I have heard both the sides and perused the appeal records. Admittedly, PCM is an excisable product. The said PCM is cleared by the appellant to the power generating unit for being used in the generation of electricity. Admittedly, the said power generation facility is located within the premises of the appellant. The same fact is recorded by the lower Authorities also. The Central Excise duty on PCM is confirmed only on the ground that the power generating unit is a s....