Case Law Analysis
|Custom, Excise & Service Tax Tribunal
Cenvat Credit on Captive Power Plant | Credit Admissible When Electricity Fuels Dutiable Production, Even if Partially Sold: CESTAT Chandigarh
CESTAT Chandigarh rules that Cenvat credit on capital goods for a captive power plant is valid if any portion of the generated electricity directly supports dutiable manufacturing, rejecting the Department’s argument that immovability or partial sale to third parties disqualifies the credit. This clarifies a critical ambiguity for industries relying on captive power, expanding eligibility beyond purely internal consumption.