2008 (6) TMI 198

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....8 of the Schedule to the Central Excise Tariff Act, 1985. The appellants installed three Gas Turbines in its premises for generation of electricity to be used captively and also supply to their joint Venture and vendors. They used "napthas" as input for generation of electricity and availed Cenvat credit. Show Cause notices were issued proposing to disallow Cenvat credit on such quantity of naptha which was used for the purpose of manufacture of electricity sold to their Joint Venture and Vendors in terms of Rule 6(1) of Cenvat Credit Rules, 2002. The Adjudicating Authority disallowed the credit of Rs. 67,71,876/- and Rs. 81,60,990/- and imposed penalty of equal amounts under Rule 13 of Cenvat Credit Rules, 2002 along with interest. 3. T....

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..... CCE, Indore reported in 2006 (194) E.L.T. 3 (S.C.). He also submits that the decision of the Hon'ble Supreme Court in the case of Solaris Chemtech Ltd. (supra) is squarely applicable in the present case. 5. After hearing both the sides and on perusal of the record, we find that the main contention of the appellant is that they used naptha within their factory of production as fuel for generation of electricity in their gas turbine. The learned Advocate contended that the appellants used naptha for generation of electricity within their factory of production which is within the definition of 'input' under Rule 2(g) of the said Rules. It is also contended that Rule 6 of the Rules would not apply where the inputs used as fuel were used fo....