FINAL ORDER NO. 75709 / 2026

ORDER: [PER SHRI ASHOK JINDAL]

The appellant is in appeal against the impugned order whereby the denial and recovery of CENVAT Credit of Rs.5,36,809/- (inclusive of cess) availed on furnace oil, along with interest thereon, has been upheld.

2. The facts of the case are that M/s. MCPI Private Limited (hereinafter referred to as “the appellant”) is engaged, inter alia, in the manufacture of Purified Terephthalic Acid (PTA), classifiable under Tariff Heading 29173600 of the First Schedule to the Central Excise Tariff Act, 1985, at its manufacturing facility at Vill. & P.O.- Bhuniaraichak, Via Sutahata, Haldia, District - Purba Midnapur, West Bengal.

3. The appellant has been using furnace oil for manufacturing PTA as also for generation of electricity captively consumed within the factory premises. However, 132 KV Power Supply Line was commissioned and made operational in two phases beginning April, 2015 and June, 2015. Consequently, during the impugned period i.e., from May, 2015 to February, 2016, a major portion of furnace oil was used in the manufacture of final products and only a negligible quantity was used in generation of electricity. H