MARUTI UDYOG LTD Vs. CCE

JUDGEMENT

(1.) COMMON issue is involved in both the appeals and therefore, these are being taken up together for disposal.

(2.) THE appellants are engaged in the manufacture of Motor Vehicles and parts thereof classifiable under Heading No. 87.02 and 87.08 of the Schedule to the Central Excise Tariff Act, 1985. The appellants installed three Gas Turbines in its premises for generation of electricity to be used captively and also supply to their joint Venture and vendors. They used "napthas" as input for generation of electricity and availed Cenvat credit. Show Cause notices were issued proposing to disallow Cenvat credit on such quantity of naptha which was used for the purpose of manufacture of electricity sold to their Joint Venture and Vendors in terms of Rule 6(1) of Cenvat Credit Rules, 2002. The Adjudicating Authority disallowed the credit of Rs. 67,71,876/ - and Rs. 81,60,990/ - and imposed penalty of equal amounts under Rule 13 of Cenvat Credit Rules, 2002 alongwith interest.

(3.) THE learned Jt. CDR on behalf of the Revenue, reiterates the finding of the Commissioner of Central Excise. He submits that in this case, the appellant sold the electricity to the joint Venture and their vendors. He relied upon the decision of the Hon'ble Supreme Court in the case of Vikram Cement v. CCE Indore reported in . He also submits that the decision of the Hon'ble Supreme Court in the case of Solaris Chemtech Ltd. (supra) is squarely applicable in the present case.