Appellate Tribunal Grants Cenvat Credit for Free Transferred Electricity; Rejects Market Price Valuation Approach.

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....CENVAT Credit - generation of electricity which, later on, is cleared to its sister unit - The Appellate Tribunal finds that the appellant is indeed entitled to Cenvat Credit on inputs and input services used for the production of electricity, which is transferred to its sister unit at Urse free of cost. The Tribunal emphasizes that since the electricity is transferred free of cost, the valuation should not be based on the price of electricity sold by other entities. The Tribunal relies on precedent and distinguishes the case from situations where electricity is sold for a price outside the factory.....