2008 (2) TMI 269

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....n the manufacture of cement and has a captive power plant located within the premises of the cement plant. The captive power plant consists of gas turbine generator and steam turbine generator. (b) The appellant used duty paid Naphtha and furnace oil to generate gas, which in turn was used to run the gas turbine generator to produce electricity. Some quantity of gas, which come as exhaust gas from gas turbine generator was earlier being let off to the atmosphere and was getting wasted. Later they have used such exhaust gas to generate steam and the generated steam is used for running the steam turbine generator producing electricity. (c) A part of the electricity generated was being supplied to their sister units situated outside thei....

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....s the entire steam produced has been used within the factory of production, the sending of electricity to their sister units should not lead to denial of Cenvat credit. 4.4 He relies on the following decisions in support of his various contentions: (a) S.R.F. Ltd. v. CCL [2005 (191) E.L.T. 887 (T)] (b) Raymond Ltd. v. CCE [2000 (117) E.L.T. 104 (T)] (c) Gujarat Narmada Fertilizers Co. Ltd. v. CCE [2004 (176) E.L.T. 200(T)] (d) CCE v. Gujarat Narmada Fertilizers Co. Ltd. [2006 (193) E.L.T. 136 (Guj)] (e) Gujarat Narmada Fertilizers Co. Ltd. v. CCE [2007 (208) E.L.T. 342 (LB)] (f) Reliance Industries Ltd.v. CCE & C [2007 (224) E.L.T. 464 (Tribunal) = 2008-TIOL-159CESTAT-AHD] (g) Grasim Industries Ltd. v. CCL - F. No. A....

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....tricity has to be reversed. She also relies on the decision of the Tribunal in the case of M/s. Reliance Industries Ltd. in Appeal Nos. E/6002, 603, 741,766/07 [2008 (224) E.L.T. 117 (T)] (Final Order Nos. A/3081 to 3084/WZB/AHD/07, dated 18-12-2007 and in appeal No. E/1833/2006 (Final Order No. A/70/WZB/AHD/08, dated 15-1-2008 [2008 (224) E.L.T. 464 (T)]. 6.1 We have carefully considered the submissions from both sides. We find that the Naphtha, furnace oil have been used for the purpose of generating electricity. That two types of generators viz, gas turbine generator or steam turbine generator have been used is of no significance. In either case, the intention is to produce electricity. We agree with the contention of the ld. Jt. CDR ....