2022 (7) TMI 1176

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.... Court in the case of Indian Oil Corporation Limited Vs. Collector of Central Excise, Baroda [2006 (202) ELT 37 (S.C.)], has dropped the demand raised vide Show Cause Notices detailed in the following table:- Sl. No. Show Cause Cum Demand Notice No. & Date Period Amount 01 v.Ch.27(15)231/Ch/Hal/ Adjn / 04/10216 dated 08.09.2004 August 2003 to March 2004 Rs.1,83,99,942.00 02 25/electricity/IFO & Naptha/2003-04 dated 31/10/203 October 2002 to July 2003 Rs. 14,93,440.00 03 99/IFO/Elec/2003 dated 04.03.2003 February, 2002 to September 2002 Rs. 14,80,494.00 TOTAL Rs. 2,13,73,877/- 2.1 The Respondent is having a captive power plant for generation of electricity within the refinery....

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.... We have heard Shri S.S.Chattopadhyay, Ld.Authorized Representative for the Revenue and Shri Saurav Gupta, Ld.Accounts Officer for the Respondent. 4.1 Ld.Authorized Representative for the Revenue submits that the issue has not been considered in right perspective by the  Ld.Commissinoer in as so much as Para 14 of the Hon'ble Supreme Court's in the case of Indian Oil Corporation Limited (supra), provides as follows:- "14. For the reasons stated above, these appeals are accepted; order under appeal is set aside and it is held that the assessee would be entitled to the benefit of exemption Notification No. 75/84 in terms of entry 34 read with clarificatory circular which covers such captive consumption of the fuel for the pur....

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.... must be by the manufacturer who claims the CENVAT credit i.e. the assessee. The use may be direct or indirect. It must, however, be used by the manufacturer concerned. It cannot be the use of another unless such use is for or on behalf of the assessee. The definition of "input service" in Rule 2(l)(ii) expressly states that "input service" means any service used by the manufacturer i.e. the assessee whether directly or indirectly in or in relation to the manufacture of the final product and clearance of the final product from the place of removal. Thus, the use of the input service must be by the manufacturer i.e. the assessee. The words "whether directly or indirectly" cannot be extended to the use of such input services by third parties ....

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.... benefit would not be available. In the case of Maruti Suzuki Ltd. v. Commissioner [2009 (240) E.L.T. 641 (S.C.)], the Hon'ble Supreme Court has held as follows:-  "20. To sum up, we hold that the definition of "input" brings within its fold, inputs used for generation of electricity or steam, provided such electricity or steam is used within the factory of production for manufacture of final products or for any other purpose. The important point to be noted is that, in the present case, excess electricity has been cleared by the assessee at the agreed rate from time to time in favour of its joint ventures, vendors etc. for a price and has also cleared such electricity in favour of the grid for distribution. To that extent, in....