2017 (11) TMI 475

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... input services. The appellant had the captive power plant to generate electricity. A part of electricity so generated was wheeled out to the Chhattisgarh State Electricity Board. Since electricity is classifiable under Tariff Item no.27160000 and was not leviable to Central Excise Duty, the department was of the view that the appellant was required to pay an amount equal to 10%/ 5% of the price of exempted goods, i.e. electricity in terms of the provisions of rule 6 (3) (i) of the Cenvat Credit Rules, 2004. The demand for the amount was made in the impugned order for the period December, 2008 to August, 2009, amounting to Rs. 76,51,967/- along with interest and penalty equal to the said amount. Aggrieved by the impugned order the present a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ey have not followed the procedure prescribed therein. 7. We have heard both sides and perused the record. 8. The appellant has availed Cenvat Credit on inputs and input services. A part of these have been used in the captive power plant to generate electricity. A part of electricity was wheeled out to the Electricity Board. Under Chapter Heading 27160000 of Central Excise Tariff Act, no excise duty is payable on electricity. Accordingly, department is of the view that the mischief of Rule 6(3) of the CCR 2004 will be attracted and an amount at the rate of 10%/5% will be required to be reversed by the appellant on the value of electricity wheeled out. 9. Rule 6 (3A) has been introduced w.e.f 01/04/2008, according to which the appellant i....