TaxTMI 
TaxTMI 
2019 (9) TMI 1520
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....missioner, Central Excise, Bhubaneswar, Commissioner (Appeals) Central Excise Bhubaneswar and Commissioner, GST & Central Excise, Rourkela. Due to change of jurisdiction, the Commissioner, Central Excise, Rourkela is the respondent in respect of all the appeals, filed by the appellant. Issue in dispute being common in all the appeals, these are taken up for disposal together. 2. The facts of the case in brief are that the appellant, a Central Government Public Sector Undertaking, under the Ministry of Mines, Govt. of India, is engaged in manufacture of Aluminium metal falling under chapter 76 of the Central Excise Tariff Act,1985, in its smelter plant located at Angul in the State of Odisha. For manufacture of Aluminium metal, Alumina fall....
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....d input service credit, which fact has been accepted by the department. 7. The Central Excise Department raised dispute by issuing show-cause-notices, seeking denial of input and input service credit, used in the generation of electricity, which was supplied to the appellant's Damanjodi unit, for consumption in manufacture of Alumina. According to the department, since the electricity is supplied to the sister unit at Damanjodi, which is having separate registration under Central Excise, the input and input service, used for generation of such electricity, are not eligible for cenvat credit. In other words, the electricity generated in the CPP and used in the Smelter Plant, Angul for manufacture of Aluminium Metal, is eligible for credit, ....
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....onsumption). They are not entitled to CENVAT credit to the extent of the excess electricity cleared at the contractual rates in favour of joint ventures, vendors etc., which is sold at a price. Aggrieved by the adjudication orders passed by the Commissioner, Central Excise, Bhubaneswar/Rourkela, and the orders of the appellate authority, the appellant filed the present appeals before this Tribunal. 9. The appeals were posted for hearing on 27.09.2019. Sri S. C. Mohanty, learned advocate for the appellant appeared. Besides reiterating the submissions vide the appeal memorandum, the learned Advocate filed an additional written note which is taken on records. 10. The learned Advocate submits that in the present case, the Bauxite Mines and t....
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....t of excess electricity cleared at the contractual rates in favour of joint ventures, vendors etc., which is sold at a price. The learned Advocate submits that in the present case, electricity generated in the CPP, is not sold to its Damanjodi plant but captively consumed in the manufacture of Alumina, and the processes are integrated and interlinked. In view of the above position the decision of the Hon'ble Supreme Court in the case of Maruti Suzuki Ltd. (supra) is clearly distinguishable. 12. It is further submitted by the appellant that in the case of Sanghi Industries Ltd. Vs. CCE, Rajkot = 2014 (302) ELT - 564 (Tri-Ahmd), it was held that it is economical in the modern competitive working to have a large power plant catering to power ....
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....arned Authorized Representative, appearing for the Revenue submits that the Alumina Plant at Damanjodi is separately registered under the Central Excise and situated more than 400 km away from the CPP and, therefore, the credit in respect of the electricity wheeled out to Damanjodi Plant is not admissible. The learned AR placed reliance on the decision of the Hon'ble Gujarat High Court in the case of Sintex Industries Ltd. Vs. CCE = 2013 (287) ELT -261 (Guj), wherein it was held that two units situated within the common boundary wall owned by the assessee, or a single legal entity, holding two separate registrations - Assessee was entitled to credit on eligible inputs utilized for generation of electricity to the extent to which it was used....
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....Hon'ble Rajasthan High Court in the case of CCE Vs. Shree Cement Ltd. = 2018 (16) GSTL 196 (Raj). We find that the Alumina Plant at Damanjodi, the Aluminium metal plant at Angul and the captive power plant, are integral parts of the same captive arrangement. Electricity, generated in the CPP, is captively used by both the units for manufacture of excisable goods. There is no sale of electricity by the appellant to its Damanjodi unit. Therefore, the ratio of decision of the Hon'ble Supreme Court, in the case of Maruti Suzuki (supra) is not applicable to the facts of the present case. In the case of Shree Cement Ltd (supra), the Hon'ble High Court of Rajasthan, after elaborate discussions, have distinguished the case of Maruti Suzuki (s....