CENVAT Credit Allowed for Inputs Transferred Free to Sister Unit for Electricity Production

Finolex Industries Ltd Vs Commissioner of Central Tax (CESTAT Mumbai)

The dispute between Finolex Industries Ltd and the Commissioner of Central Tax, Mumbai, revolves around the admissibility of CENVAT credit on inputs and input services used for electricity generation transferred to their sister unit.

The appellant, engaged in manufacturing PVC products, availed CENVAT credit on inputs used for electricity generation, later transferred to its sister unit. Initially, they reversed credit as per Rule 6(3)(ii) of Cenvat Credit Rules, 2004. However, following a tribunal decisio

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