Case Law Details
Commissioner of Central Excise & Service Tax Vs DCW Ltd (CESTAT Mumbai)
CESTAT Mumbai held that rule 6(5) of Cenvat Credit Rules, 2004 provides for availment of entire amount of credit of input services even though certain portion must have been used in manufacture of exempted goods.
Facts- A limited issue arises in this appeal of Revenue against order of Commissioner of Central Excise (Appeals) which, on appeal of M/s DCW Ltd against order of original authority denying retention of credit of ₹ 34,30,643, ₹ 39,92,426 and ₹ 17,41,354 taken under rule 3 of CENVAT Credit Rules, 2004 equal to tax included in bills of M/s Thermax Ltd for ‘operation and maintenance’ service and for transport of coal by ‘goods transport agency’ between April 2009 and December 2009, between January 2010 and December 2010 and between November 2010 and June 2011 respectively for generation of electricity and steam in the coal fired 50 MW ‘captive power plant’ installed for consumption in the factory, found the respondent herein to be entitled to credit without any truncation.
It is common ground that the entire production of steam and bulk of electricity were utilized in manufacture of various excisable goods. However, vide power purchase agreement (PPA) of the appellant with PTC India Ltd dated 24th April 2009, the appellant had been supplying excess production to the Tamil Nadu Electricity Board (TNEB) and the notices proposed recovery of credit proportional to such sale for the period in dispute.
Conclusion- Held that sub rule (5) to rule 6 of Cenvat Credit Rules, 2004 provides for availment of entire amount of credit even though certain portion must have been used in manufacture of exempted goods.
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