Central Excise – Scope to term “Factory” under Section 2(e) of the Central Excise Act, 1944 – Rule 57AA of the Central Excise Rules, 1944 - Rule 2 of CENVAT Credit Rules, 2001 - Eligibility to CENVAT Credit on capital goods used in Power Plant meant for another company - Respondent-assessee set up a Metallurgical Coke Plant along with a Captive Power Plant for its own consumption as well as for sale of power to a different and distinct entity – Department case that use of capital goods outside the factory of manufacture of final products or any use not in or in relation to the manufacture of the final products would render the capital goods ineligible for the purposes of availment of CENVAT Credits – Revenue appeal challenging Tribunal order allowing the appeal of the Respondent-Assessee – HELD – Definition of ‘Factory’ in Section 2(e) of the CEA, 1944 does not preclude the possibility of there being two or more premises which can be “segregated by public road, canal or railway line” - as long as the two portions are integrally connected and inter-linked with the manufacturing process of excisable goods, it can be considered to be part of the same factory premises - merely because the Coke Oven Plant and the CPP may have been in two separate locations would not result in there being considered to be not part of the same factory premises - there is indeed no restriction under the CENVAT Scheme that after captive use of power, the surplus power cannot be sold to any other party. The only restriction is that the capital goods are not to be exclusively used for manufacture of ‘exempted products’ – As along as power generated in the CPP of KMCL is used in the manufacture of the excisable goods by KMCL, the mere fact that the surplus power may have been sold to NINL would not disentitle KMCL to the benefit of CENVAT Credit on capital goods - the Coke Oven Plant and the CPP have factually been shown to be part of the same factory premises and CENVAT Credit can be allowed in the facts and circumstances of the case – answered in favour of assessee - Revenue appeal is dismissed

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