CENVAT Credit on inputs used in generation of electricity not admissible on electricity that is transferred to grid

Jindal Stainless Ltd. Vs Commissioner of Central Excise (CESTAT Chandigarh) CESTAT Chandigarh held that CENVAT Credit on inputs used in generation of electricity is admissible only to the extent the electricity produced and utilized in the factory of production and not on the portion of electricity transferred/sold to the grid. Facts- The appellants, M/s Jindal Stainless Ltd, are manufacturers of slabs, blooms, ingots etc; in order to overcome the shortages of power and power outages, the appellants established a captive power plant with DG Sets to generate electricity; as the power generated...