JUDGMENT

S. H. Kapadia, J.—

1. Leave granted.

FACTS IN THE LEAD MATTER

2. 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 construe the word “input” as defined in Rule 2(g) of CENVAT Credit Rules, 2002.

3. 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. These motor vehicles are cleared on payment of duty. Assessee claimed CENVAT credit on “input” in accordance with CENVAT Credit Rules, 2002 (for short, “2002 Rules”). Assessee has installed three gas turbines in their factory for generation of electricity. All the three turbines have capacity to generate electricity of 20 MW each. Till June 2002, assessee was using natural gas as fuel for running the three gas turbines. No excise duty was leviable on natural gas and, therefore, there was no question of availing CENVAT credit on natural gas. During July 2002 to December 2002, assessee started using diesel as fue