TaxTMI 
TaxTMI 
2008 (3) TMI 315
X X X X Extracts X X X X
X X X X Extracts X X X X
....ompany, later on, came to be known as M/s. JSW Steel Ltd.,) in a piece of land leased out to them by the appellants under a lease agreement. Under the said agreement, M/s. JSW Power Ltd., set up the power plant in the leased premises by making use of components procured by them but consigned to the appellants. The power plant, when it became ready for commissioning, was handed over to the appellants some time in August, 2006 on payment of full consideration for the job. The appellants started using the power plant in April, 2007. CENVAT credit on the aforesaid components was taken to the extent of 50 per cent during the period September, 2005 to March, 2006 and the balance credit was taken in the next financial year (2006-07). The entire cr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....entral Excise Act, even after its lease to M/s. JSW Power Ltd., that the lease was for the simple purpose of getting the power plant assembled and erected in the premises by M/s. JSW Power Ltd., who had the requisite paraphernalia for the purpose, that the power plant as and when erected stood handed over to M/s. SISCOL upon termination of the above lease deed and that, ever since then, it has been in use by M/s. SISCOL for generation of electricity for captive consumption. On these facts, it is submitted that the leased premises continued to be 'integrally' connected with the Steel Mill and, therefore, the benefit of CENVAT credit on the goods in question cannot be denied to M/s. SISCOL. In this connection, learned counsel has relied on th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ory premises which were leased out to another person, duty was held to be recoverable on the ground that the capital goods were removed from the assessee's factory. Both sides have exclusively referred to various provisions of the CENVAT Credit Rules, 2004 also. Learned counsel for the appellants has also taken us to the balance sheet (as on 31-3-2007) of M/s. SISCOL in the context of pleading financial hardships. It is submitted that the total accumulated loss amounts to over Rs. 225 crores. 3. Yet another fact which is on record is that M/s. SISCOL have since been merged with M/s. JSW Steel Ltd., and that the factory which includes the subject power plant is the absolute property of the amalgamated entity. 4. After giving careful consid....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... ignored. In that case, their Lordships held that certain capital goods which were used in mines away from the cement factory should be held to have been used in the cement factory if it be found that the mine was a captive mine in the sense that the produce from the mine was dedicated to the cement factory. This doctrine of "integrality" seems to be applicable to the present case, albeit in slightly different manner. It is on record that the power plant has later become the absolute property of M/s. SISCOL and that the power generated therefrom has only been used in the manufacture of steel products in their factory. The integral connection between the capital goods, the premises in which they were received and the purpose for which they w....