TaxTMI 
TaxTMI 
2026 (5) TMI 1372
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....nd leads and are registered with Central Excise. The appellants are availing CENVAT credit on inputs, capital goods and inputs services. During the course of Audit of the records of the appellant, it appeared to the department that the appellant availed credit of inputs like (furnace oil) and inputs in the captive power plant for generation of electricity which was partly consumed by the appellant and partly wheeled out/transferred to their sister concern M/s AVVNL that the appellant have failed to maintained separate records in respect of capital goods, inputs and input services utilized for manufacture of exempted and dutiable products and therefore, they are liable to pay an amount of 5%/6% on value of electricity wheeled out/sold to the....
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....f CENVAT credit and compliance of Rule 6(3A) of CENVAT Credit Rules. 3. She submits that this Bench of the Tribunal has settled the issue in favour of the appellant, in respect of their other units, vide Final Order No. 51781-51786/2025 dated 24.11.2025 and Final Order No. 50064-50069/2026 dated 15.01.2026. She further relies on (i) Chandrapur Magnets Private Limited versus Collector of Central Excise, Nagpur [1996 (81) ELT 3 (S.C)] (ii) Commissioner of Central Excise and Customs versus Precot Meridian Limited [2015 (325) ELT 234 (S.C.)] (iii) Commissioner of Central Excise, Jaipur-I versus Sanjay Engineering Industries [2016 (43) STR (354) (Raj.)] (iv) Commissioner of Central Excise and Service Tax, U....
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....ion of India [2019 (30) GSTL 474 (Telangana)] (ii) Sky Automobiles versus The Principal Commissioner, Central GST, Central Excise and Service Tax, Final Order No. 59782/2024 dated 4.12.2024 in Service Tax Appeal No. 51090 of 2018 (iii) Agarwal Metal Works Pvt. Ltd. versus Commissioner of CGST, Alwar [2022 (65) GSTL 372-CESTAT Delhi] (iv) The Oberoi Raj Vilas versus Commissioner of Central Excise, Jaipur, Final Order No. 5205252054/2018 dated 30.05.2018 in Service Tax Appeal No. ST/51210/2024-CESTAT New Delhi (v) Rajasthan Renewable Energy, Corporation Limited versus Commissioner of Central Excise, Jaipur, Final Order No. 50347-50438/2023 dated 1.3.2023 in Service Tax Appeal No. 51569 of 2015 and Service T....
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....ssioner CGST, Delhi South versus. Air India Ltd., 2024 DHC 8153-DB (ii) Rangoli Division v. Commissioner (Appeals), Final Order No. 51318/2023 in Service Tax Appeal No. 51722 of 2018-CESTAT New Delhi (iii) GD Goenka Private Limited v. The Commissioner of Central Goods and Services Tax, Delhi South, Final Order No. 51088/2023, CESTAT New Delhi 7. Shri Bhagwat Dayal, learned authorised representative for the revenue, reiterates the findings of the impugned order. He submits elaborately on the provisions of Rule 6 by way of a chart. He submits that as per Explanation III to Rule 6, provisions of Rule 14 of Cenvat credit Rules, can be initiated for recovery of the amount payable under sub-rules (3), (3A) & (3B). He submits ....
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....credit availed by the appellant on the sale of electricity sold to the State Electricity Board had been reversed as reversal of credit amounts to not taking credit at all. 27. The Supreme Court in Chandrapur Magnet Wires (P) Ltd. vs. Collector of C. Excise, Nagpur 1996 (81) ELT 3 (S.C.) and Commissioner of Central Excise & Customs vs. M/s. Precot Meridian Limited 2015 (325) E.L.T 234 (S.C.) held that reversal of credit means that the party did not avail the input service credit. A Division Bench of the Tribunal in M/s. Star Agriwarehousing& Collateral Management Limited vs. Commissioner, Central Excise & Service Tax in Service Tax Appeal No. 51818 of 2015 decided on 28.01.2020 also observed that once the proportionate reversal of C....