TMI Blog2012 (8) TMI 529X X X X Extracts X X X X X X X X Extracts X X X X ..... tories of the appellant and just because the electricity has not been directly supplied, but has been supplied through M.P. Electricity grid, it cannot be said that the wind mills are not captive power plant - services, in question, received by the appellants have to be treated as input services eligible for Cenvat credit - E/2891/2009-SM(BR) and E/599/2010-SM(BR) - 734-735/2011-SM(BR)(PB) - Dated:- 12-10-2011 - Shri Rakesh Kumar, J. REPRESENTED BY : S/Shri Manish Saharan and M.P. Singh, Advocates, for the Appellant. Shri B.L. Soni, DR, for the Respondent. [Order]. Since the facts and the issue involved in these two appeals are identical, the same were heard together and are being disposed of by a common order. 1.1 In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he sides. 2.1 Shri M.P. Singh, Advocate, the learned Counsel representing M/s. Orissa Concrete Allied Industries Ltd. and Shri Manish Saharan, Advocate, the learned Counsel representing M/s. Rajratan Global Wires Ltd., pleaded that the appellant had established the wind mills at Dewas as captive power plant for generation of electricity for use in their respective factories, that since the power generated by the wind mill, could not be directly supplied to the factories, they entered into an agreement with M.P. State Electricity Board under which the electricity generated by the wind mill was to be supplied to M.P. Electricity Grid and the M.P. State Electricity Board was to supply 98% of the electricity to the appellants after deductin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reported in 2011-TIOL-1059-CESTAT-MUM has held that when the electricity is produced in the wind mill, which is situated far away from the factory and the electricity is transferred to the State Electricity Board grid which, in turn, supplies the electricity to the appellant s factory, the services used for such wind mill are to be treated input services and Cenvat credit of Service Tax paid on such inputs services would be available, that though the Tribunal in the case of Rajhans Metals Pvt. Ltd. v. C.C.E., Rajkot reported in 2007 (8) S.T.R. 498 (Ahmd.) has taken a contrary review, this judgment of the Tribunal has been discussed by the Tribunal in the case of Maharashtra Seamless Ltd. v. C.C.E., Raigad (supra) and the Tribunal has not ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... about the fact that if the inputs are used or in input services are availed in respect of a captive power plant situated within the factory or adjacent to the factory, Cenvat credit would be available. But if the captive power plant happens to be wind power generator, it may not be always possible to locate the same in the close vicinity of the factory, as the wind power Generators have to be located at the places where the wind with sufficient speed is available throughout the year. In this case, though the factories of the appellant are located at Raipur and Pitampur, since they have chosen to use electricity generated by their captive wind power generators, the wind mills are situated in Dewas. These wind mills have been established with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actories of the appellant and just because the electricity has not been directly supplied, but has been supplied through M.P. Electricity grid, it cannot be said that the wind mills are not captive power plant. I find that same view has been taken by the Tribunal in the case of Maharashtra Seamless Ltd. v. C.C.E., Raigad (supra) and Endurance Technologies Pvt. Ltd. v. C.C.E., Aurangabad (supra). In the first judgment, the Tribunal has also discussed the judgment of Tribunal in the case of Rajhans Metals Pvt. Ltd. v. C.C.E., Rajkot (supra), where a contrary view had been taken and has observed that view taken in that judgment is not correct. In view of judgment of Bombay High Court in the case of C.C.E. v. Ultratech Cement Ltd. (supra). In v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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