HINDUSTAN ZINC LTD. Vs. C.C.E. JAIPUR-II
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
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Ashok Jindal, J. -
(1.)THE appellant is in appeal against the impugned order wherein Cenvat Credit on inputs have been denied to them on the premise that they are not entitled to take Cenvat Credit on inputs which was used in generation of electricity which in turn used for vocational training centre, canteen and hospital. As these are not the part of their factory for manufacturing the final product.
(2.)HEARD the parties.
The contention of the Ld. Counsel for the appellant is that vocational training centre, canteen and hospital are located in the factory premises only and they are under statutory obligations to maintain the Vocation Training institute for training of their employee, the canteen to provide subsidized food and hospital for their medical facilities. Therefore, the electricity used in these places is having a nexus with the manufacturing activity of final product. Therefore, they are entitled to take Cenvat Credit on these inputs. To support his contention he relied on the decision in the case of C.C.E. Mumbai v. Bajaj Auto Ltd. - : 2011 (272) E.L.T. 308 (Tri -Mumbai) wherein this Tribunal held that gas cylinder used in canteen having a nexus with manufacturing activity of the assessee and Cenvat Credit was allowed.
(3.)ON the other hand Ld. AR opposes the contention of the Ld. Counsel and submits that the vocational training centre, canteen and hospital are located outside the factory premises. Therefore, they are not entitled to take Cenvat Credit on the inputs which were used in the generation of electricity which in turn was used for the running of the above said institutes. He further submits that initially the appellant has given a chart showing transmission of loss and whatever loss incurred by them is not entitled to take Cenvat Credit. Therefore, they are not entitled to take Cenvat Credit.
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