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2013 (7) TMI 637 - AT - Central ExciseCenvat Credit - Input services - service tax paid on service used for removal of fly ash - Alleged that as it is not used in or in relation to manufacture of final product or for providing of output service as there is no nexus with manufacture of final product and clearance of final product from the place of removal and for providing of output service – Held that:- In the case of Sanghi Industries Ltd. vs. C.C.E., Rajkot [2008 (4) TMI 471 - CESTAT, AHMEDABAD] , Hon’ble Tribunal has observed as under: “As regards the service tax paid on overhauling of DG set, the Commissioner (Appeals) has taken a view that the final product is electricity which is exempt and therefore, credit is not admissible. Now the law is well settled that Cenvat credit used on inputs/capital goods used in power plant set up by the manufacturer is admissible if the final product is dutiable and therefore, in this case also the Cenvat credit of input services for overhauling of DG set is admissible.” Also in the case of Coca Cola India Pvt. Ltd. vs. C.C.E., Pune II – [2009 (8) TMI 50 - BOMBAY HIGH COURT] held that any such service used in relation to manufacturing activity and relating to business are required to be held as cenvatable service. Removal of coal fly ash is one of the necessity for running of the captive power plant. Without such removal of the coal fly ash from the captive power plant, the same cannot operate and run, in which case, the power won’t be generated and the appellant would not be in a position to manufacture their final product – Appeal allowed – Decided in favor of Assessee.
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