Lupin ltd. in Appeal No.- E/3165/2005 – Mumbai vide its order dated 23rd August 2007
In this matter the Hon’ble CESTAT, Mumbai held that appellants are entitled for Cenvat credit on the inputs as such furnace oil used as fuel. As rightly contended by the ld. Advocate for the respondents the cases cited by the Revenue are distinguishable from the facts of this case. The inputs which are used as fuel is given special treatment in Cenvat Credit Rules. The definition of inputs is explained in two different categories. There is also inclusive part of the input definition which shows the fuel as one of the inputs, which is used within the factory of production, is sufficient for entitlement of the Cenvat credit. There is no other condition attached to the raw material used as fuel…”.
In this case it is decided that credit is allowed for fuel oil used for trial run of DG set which generate electricity which was in turn used in manufacture of final product.
