2005 (6) TMI 140

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...., Member (T)]. - Heard both sides and considered. 2. (a) Appellants have a power plant at Bharuch where credit is availed on furnace oil to generate electricity. This electricity is also transferred to another unit of the appellants at Vadodara. (b)     Credit of furnace oil used in ratio to the electricity transferred to Vadodara is being reversed. (c)  &nbs....

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....) Rule 6 of Cenvat Credit Rules permitted the availment of credit in respect of input which go as fuel as in this case. No reversal was required, if the fuel was used for non-duty paid fuel products/non-excisable goods as per this rule. The reversals, effected earlier, therefore were not called for. They were required to be corrected, by an accounting entry of a corresponding credit entry wi....