2018 (7) TMI 982

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....4 @ 10% of the value of electricity sold by them to Uttar Pradesh Power Corporation Ltd. (UPPCL). 2. The brief facts of the case are that, the assessee-Appellants are manufacturer of Sugar and Molasses. They have installed four electricity generation plants in their factory as they required electricity for their own use in the manufacture of dutiable products by using their waste product 'Bagasse' as a fuel for such generation. It appears to Revenue that as electricity sold outside to UPPCL, the assessee-Appellants are liable to pay an amount at the prescribed rate under the provisions of Rule 6(3) of the Cenvat Credit Rules, 2004. Accordingly, the demand has been raised as follows along with penalty : "I. Order-in-Original No. 07/Com....

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....4-EX(DB) dated 24.02.2014 has observed as under:- "The point of dispute in the case is that when there is a co-generation plant in the appellant's sugar mill and the power generated, besides being used in the sugar mill for manufacture of dutiable final products (sugar and molasses), is also supplied to U.P. Power Corporation, whether in respect of the power sold to U.P. Power Corporation an amount equal to 5%/10% of the sale value of the electricity would be payable in terms of Rule 6(3) read with Rule 6(2) of the Cenvat Credit Rules, 2004, as according to the Department, certain common cenvat credit availed inputs such as lubricants, grease, chemicals, etc. had been used in or in relation to the generation of electricity. The cru....