M s. Maruti Suzuki Ltd. appellant is engaged in the business of manufacturing motor vehicles falling under Chapter 87 of Central Excise Tariff Act, 1985.
214/86 Central Excise, dated the 25th March, 1986, published in the Gazette of India vide number G.S.R. 547 E , dated the 25th March, 1986, and received by the manufacturer for use in, or in relation to, the manufacture of final product, on or after the 10th day of September, 2004.
214/86 Central Excise, dated the 25th March, 1986, published vide number G.S.R. 547 E , dated the 25th March, 1986, and received by the manufacturer for use in, or in relation to, the manufacture of final products, on or after the first day of March, 2002.
During July 2002 to December 2002, assessee started using diesel as fuel to run the three turbines.
No excise duty was leviable on natural gas and, therefore, there was numberquestion of availing CENVAT credit on natural gas.
In view of the said Rules barring availment of credit on diesel, the assessee did number avail any CENVAT Credit on diesel procured by them.
These motor vehicles are cleared on payment of duty.
Till June 2002, assessee was using natural gas as fuel for running the three gas turbines.
H. KAPADIA, J. Leave granted.
All the three turbines have capacity to generate electricity of 20 MW each.
FACTS IN THE LEAD MATTER The issue in the present civil appeal is whether the Department is right in reversing proportionate CENVAT credit to the extent of power wheeled out by the appellant to its sister units, vendors, joint ventures.
Basically, in both the civil appeals we are required to companystrue the word input as defined in Rule 2 g of CENVAT Credit Rules, 2002.
Assessee has installed three gas turbines in their factory for generation of electricity.
Assessee claimed CENVAT credit on input in accordance with CENVAT Credit Rules, 2002 for short, 2002 Rules .
