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2018 (4) TMI 1384 - AT - Central ExciseCENVAT credit - input services - operation, maintenance, repair and insurance charges of windmill installed out side the factory premises - tripartite ‘wheeling and banking agreement’ between the appellant company, ‘ Suzlon Energy Limited ’ and ‘ Jaipur Vidyut Vitran Nigam Limited - Held that: - the appellant is drawing the power in exchange at their factory in lieu of the power injected in the grid which is located at a distance and they are required to pay only the wheeling/grid charges - the appellant is indirectly receiving power in their factory which is one of the factors of production, without which they cannot manufacture their dutiable outputs. Issue squarely covered by the decision in the case of Parry Electronics and Engg. Pvt Ltd [2016 (1) TMI 546 - CESTAT AHMEDABAD] wherein it has been held that in case of Windmills located away from the factory and electricity generated is surrendered to the grid and the same is withdrawn in the factory from the grid, Cenvat credit is available for the services received and used at the windmills located away from the factory. Appeal allowed - decided in favor of appellant.
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