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2022 (2) TMI 542 - AT - Central ExciseCENVAT Credit - input service credit availed for the unit, for the purpose of repair and maintenance to Captive Wind Mill of the appellant located far from the appellants’ factory, situated at Surajpur Tehsil at Ratlam, Chittor Section - HELD THAT:- The issue herein is no longer res integra and has been decided in favour of the appellant /assessee by the law laid down by the Hon’ble Supreme Court in the case of VIKRAM CEMENT VERSUS COMMISSIONER OF CENTRAL EXCISE, INDORE [2006 (1) TMI 130 - SUPREME COURT], wherein the Hon’ble Supreme Court has upheld the allowability of the cenvat credit on the inputs or input sevices received outside the factory at the captive mines. Admittedly, in the facts of the present case, the wind mill is a captive unit of the appellant. Admittedly, the appellant have generated power at the wind mill and transferred the power under Wheeling Dealing Agreement in the Western Grid, and thereafter, has drawn power at its factory at Rajnandgaon. Further, from the Bill raised by Western Grid, it is evident that the appellant has been given credit of the units transferred to the grid at the Wind Mill and thereafter, have drawn power at Factory, they were required to make payment and if they have drawn excess power, and if they have drawn some less power, then they were entitled to such credit as per the agreement. The agreement also provides for payment of Wheeling Dealing charges to western grid by the appellant. Thus, the order of the court below is also contrary to the facts and there is clear mis-reading of the agreement between the appellant and the Western Grid. As the appeal is allowed on merits, the issue of limitation is left open - Appeal allowed - decided in favor of appellant.
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