Unknown vs The Commissioner Of Central Excise on 19 March, 2010
Explanation 2. Input include goods used in the manufacture of capital goods which are further used in the factor of the manufacturer but shall not include cement, angles, channels, Centrally Twisted Deform bar (CTD) or Thermo Mechanically Treated bar (TMT) and other items used for construction of factory shed, building or laying of foundation or making of structures for support of capital goods.
while defining the term, input, more particularly, the words input used in relation to the manufacture of final products, the Supreme Court in MARUTI SUZIKI LTD. v. CCE [(2009) 9 SCC 193], in the context of generation of electricity, has clearly held that to the extent of clearance of excess electricity outside the factory either to joint ventures or vendors or grids, the same is not admissible for CENVAT credit, in the following lines: