TaxTMI 
TaxTMI 
2023 (3) TMI 1478
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.... Sixty Seven Lakh, Ninety Six Thousand Seven Hundred and Thirty Only) 2010-11 to August 2013 Nonpayment of 6% amount on electricity sold to MSEDCL & trading of goods 2 V(39)15 - 265/ADJ/COMMR.KOP /14 dated 20.09.2014 76,24,644/- (Rupees Seventy Lakh, Twenty Four Thousand, Six Hundred and Forty Four only) Sept. 2013 to June 2014 Nonpayment of 6% amount on sale of electricity to MSEDCL 44. I order for appropriation of the amount of Rs 2,32,39,597/- which was deposited by the noticee against the demand at Sr. No. 1 above towards the amount so confirmed and payable by them against the demand at Sr.no. 1 shown in Col No. 3 of table above; 45. I order recovery of Interest at the appropriate rate on the demands confirmed at Sr.No. 1 & 2 above, till the date of its actual payment, under the provisions of Rule 14 of the Cenvat Credit Rules, 2004, read with Section 11AA/11AB of the Central Excise Act, 1944; 46. I impose a penalty equivalent to the amount of demand confirmed at Sr.No. 1 & 2 above Rs. 13,67,96,730/-(Rupees Thirteen Crore, Sixty Seven Lakh, Ninety Six Thousand, Seven Hundred and Thirty Only) and Rs. 76,24,644/-(Rupees Seventy Six ....
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....uld not be recovered from them, for period 2010-11 to August 2013, under Rule 14 of the Cenvat Credit Rules, 2004, read with Section 11A of the Central Excise Act, 1944; (c) An amount of Rs 2,32,39,597/- deposited by them voluntarily should not be adjusted and appropriated towards the amount so demanded from them; (d) Interest at the appropriate rate on the said inadmissible cenvat credit, should not be demanded and recovered from them, from the date of availment of such wrong credit, till the date of its actual payment, under the provisions of Rule 14 of the Cenvat Credit Rules, 2004 read with Section 11AA/11AB of the Central Excise Act, 1944; (e) Penalty should not be imposed upon them under Rule 15(2) of the Cenvat Credit Rules, 2004 read with Section 11 AC of the Central Excise Act, 1944. 2.5 Another Show Cause Cum Demand Notice dated 30.09.2014 covering only aspect of nonpayment of 6% amount on value of electricity supplied to the MSEDCL for period from Sept. 2013 to June 2014 has been issued for an amount of RS. 76,24,644/- on 30.09.2014. 2.6 Both the show cause notices have been adjudicated by the impugned order. Aggrieved appellants have fil....
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....for the purpose of computing reversal of cenvat credit of inputs and input attributable to EDC cleared as such and electricity wheeled out. ► Reversal of credit demanded on the quantity of electricity transferred to Urse plant (sister unit) is not sustainable, Electricity wheeled out to sister units cannot be considered as electricity wheeled out. 3.3 Learned authorized representative for the revenue reiterates the findings recorded in the impugned order. 4.1 We have considered the impugned order along with the submissions made in appeal and during the course of arguments 4.2 Undisputedly EDC is an input for the appellant and they could have cleared the same on reversal of credit taken on the said inputs as per Rule 3 (5) of the Cenvat Credit Rules, 2004. Such removal of the inputs cannot be said to be trading in the inputs and the clearance of inputs against which the appellants have taken the credit need to be dealt in terms of the said rule 3 (5) and not in the terms of Rule 6, ibid. In case of Punjab Steels [2010 (260) ELT 521 (P&H)], Hon'ble High Court held as under: "Be that as it may, however, still even on merits, this court finds that t....
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....it Rules, 2004 by treating such removals to be trading in inputs. 4.5 It is also settled position in law as per the following decisions that the substantial benefit of proportionate reversal should not be disallowed to the appellants just for reason of procedural irregularities such as non filing of prior declaration or intimation. Reliance is placed on the following decisions: i. Mercedes Benz India (P) Limited [2015 (40) STR 381 (T)] ii. Tata Technologies Ltd [2016 (42) STR 290 (T)] iii. Star Agriwarehousing Ltd. [2020 (10) TMI 198 CESTAT NEW DELHI] iv. Reliance Life Insurance Co. Ltd. [2017 (10) TMI 400 - CESTAT MUMBAI] v. Thiru Arooran Sugars Ltd [2018 (7) TMI 87 - CESTAT CHENNAI] vi. Aster Pvt. Ltd. Vs. CCE - 2016 (6) TMI 866 - CESTAT HYDERABAD vii. Mercedes Benz India Pvt. Ltd [2020 (3) TMI 146 - CESTAT MUMBAI] Therefore, the demand raised under Rule 6(3)(i) on the ground that the appellants have not filed declaration under Rule 6(3)(ii) read with Rule 6(3A) of CCR, 2004 is erroneous. 4.6 As per Rule 2(d) of CCR, 2004 'excisable goods' are those which are specified in the first and second Schedule to ....
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.... electricity or steam which is used within the factory would qualify as an immediate product. The utilization of inputs in the generation of steam or electricity not being qualified by the phrase "within the factory of production" could be outside the factory. Therefore, whatever goes into generation of electricity or steam which is used within the factory would be an input for the purposes of obtaining credit on the duty payable thereon." 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 our view, assessee was not entitled to CENVAT credit. In short, assessee is entitled to credit on the eligible inputs utilized in the generation of electricity to the extent t....