TaxTMI 
TaxTMI 
2007 (12) TMI 210
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....nbsp; [Judgment per : K.L Manjunath, J]. - This appeal is by the Revenue challenging the order passed by the Customs, Excise and Sales Tax Appellate Tribunal, South Zone, Bangalore (hereinafter referred to as "the Tribunal" for short) in Appeal No. E/27/2002 dated 1-6-2004 whereunder the Tribunal has reversed the findings of the Commissioner of Central Excise in his Order-in-Original No. 8/2001 dated 29-10-2001. 2. Stated in nutshell the facts of the case are as under: (a) The respondent-assessee namely the Associated Cement Company Ltd. is engaged in the manufacture of cement at Wadi. The assessee had installed a captive power unit comprising of two turbine generators each having rated capacity of 25 MW and three steam generators each ....
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....he Commissioner of Central Excise, Belgaum, by his order dated 29-10-2001 confirmed the demand made by him in the said show cause notice. Aggrieved by the same the assessee filed appeal before the Tribunal contending that there is no violation of MODVAT credit rules since the capital goods comprising of the said power unit was not removed from the premises of the assessee where the unit was installed and therefore it cannot be held that there was any violation of any of the said provisions of the Act and the Rules. The Tribunal, after hearing the parties, held that the assessee had not removed the said capital goods from the premises and as such there was no violation of MODVAT credit rules or any of the said provisions and accordingly allo....
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....ot be considered as an out and out sale of the power unit as it was only an arrangement of facilitation and that even to this date the power generated from the said power unit is being utilised by the assessee for manufacturing the cement in its factory and as such there has been no sale and no physical removal of the power unit or the capital goods so as to attract the penal provisions of the Act and the Rules. 5. Having heard the learned counsel for the parties and on perusal of the agreement dated 14-3-1999 entered into between the assessee and M/s. Tata Electric Company we have no hesitation to hold that the transaction thereunder between them was an absolute sale of the power unit for a valid sale consideration of Rs. 90 crores and th....