Case Law Details
SUMMARY OF CASE LAW
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.
RELEVANT PARAGRAPH
2. The issue in the present civil appeal is : whether the Department is right in reversing proportionate CENVAT credit to the extent of power wheeled out by the appellant to its sister units, vendors, joint ventures. Basically, in both the civil appeals we are required to construe the word “input” as defined in Rule 2(g) of CENVAT Credit Rules, 2002.
3. M/s. Maruti Suzuki Ltd. (appellant) is engaged in the business of manufacturing motor vehicles falling under Chapter 87 of Central Excise Tariff Act, 1985. These motor vehicles are cleared on payment of duty. Assessee claimed CENVAT credit on “input” in accordance with CENVAT Credit Rules, 2002 (for short, “2002 Rules”). Assessee has installed three gas turbines in their factory for generation of electricity. All the three turbines have capacity to generate electricity of 20 MW each. Till June 2002, assessee was using natural gas as fuel for running the three gas turbines. No excise duty was leviable on natural gas and, therefore, there was no question of availing CENVAT credit on natural gas. During July 2002 to December 2002, assessee started using diesel as fuel to run the three turbines. In view of the said Rules barring availment of credit on diesel, the assessee did not avail any CENVAT Credit on diesel procured by them. From January 2003 onwards, assessee are using naphtha as fuel to run the gas turbines and they are availing CENVAT Credit on naphtha used for generation of electricity in gas turbines. Assessee also uses diesel generating set (DG set) for generation of electricity with the use of diesel for which they had not availed any credit. In their factory, assessee has a common distribution point for electricity generated in turbines as well as DG set and the entire electricity which is generated in the turbines and DG set(s), placed in the factory, is distributed through common distribution point.
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sir please tell me one case study with answer of cenvat in manufacturing industries
We are the producing electric power and supplied to all four states. whether we are are eligible to get cenvat credit since our final product ie electricity is not exciseable. pl confirm
Dear Sir,
I am a manufacturer of a chemical product called 4-CHLORO 2-AMINO PHENOL (in short form 4CAP). My production capacity is 20MT/month. But now a days i have demand of about 40MT/month. I want to purchase 4CAP from market and sell the same product in market. Is it possible for me to do that. If yes then can I avail credit of excise on that purchase.