BALLARPUR INDUSTRIES LTD. Vs. CCE

JUDGEMENT

(1.) HEARD both sides.

(2.) THE appellants, M/s. Ballarpur Industries Ltd., Ballarpur, are engaged in the manufacture of paper falling under chapter 48 of the Schedule to the Central Excise Tariff Act 1985 and are availing the benefit of CENVAT Scheme under Cenvat Credit Rules 2002 and Cenvat Credit Rules 2003.

(3.) THE appellants are also captively consuming electricity (exempted product), which is used in the manufacture of their final product and a part of the said electricity is supplied to the residential colonies. The appellants are also availing the facility of Cenvat credit on the inputs, namely, resin, maxtreat, hydrazine hydrate, morphile used for the demineralization of raw water. The treated water is used for generation of steam, which in turn is used for generation/manufacture of electricity. The appellants are reversing proportionate Cenvat Credit on the inputs contained in that part of the electricity, which is rolled out to the colonies.