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2015 (10) TMI 1929 - AT - Service TaxDenial of CENVAT Credit - maintenance of main road, residential colony electrical maintenance, residential telephone - Held that:- So far as maintenance of STP is concerned, it was a requirement of the Pollution Control Board to set up the plant for affluent treatment and water which being scarce may be made free from pollution for reuse thereof without being used for human consumption. Pollution Control Board permits set up of such plant for effective utilization of the water resource which cannot be ignored. Therefore, it cannot be said that the STP is not the integral part of the factory as well manufacturing activity to manufacture caustic soda. Removal of effluence being one of the requirement of effective utilization of water for the factory through recycling process, denial of CENVAT credit for the maintenance of STP would be unreasonable. Therefore, appellant succeeds on this point and respective CENVAT credit claimed on such count is allowed. So far as the maintenance of main road, residential colony electrical maintenance, residential telephone at Kodaikanal, painting of office building are concerned, there is no nexus thereof to the manufacturing operation for which the appellant is not entitled to CENVAT credit on the service tax paid to avail such services - So far as the maintenance of the windmill is concerned, a windmill owner generating power at the source of wind may not have factory at the same place. Therefore, they exchange power generated by them with the Electricity Board at the point of generation for getting equivalent power at their place of manufacture. - Decided partly in favour of assessee.
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