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Aluminium Powder Co Ltd And Others Versus C.C.,C.C.E. & S.T., Madurai And Others

2015 (8) TMI 1234 - CESTAT CHENNAI

Denial of CENVAT Credit - Various services - Held that:- Credit on annual operation and maintenance service of windmill, normal maintenance and services availed in respect of functioning of wind mill are allowed. - Appeals have been filed by Revenue against cenvat credit of service tax paid on lease rental allowed by the authority below. Record reveals that rent paid is directly attributable to the generation of wind energy. - issue of Cenvat credit of service tax paid on rental services is .....

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cy taken to protect them from various health hazards is obligation of the employer under the Factories Act. Accordingly, service tax paid in respect of such services is considerable tor allowance of Cenvat credit. Revenue does not dispute to such claim since there was no evidence on record to show that policy relates to any other property or contingency. Accordingly, the Cenvat credit relating to service tax paid on availing insurance services for workers is allowable. - Cenvat credit on ser .....

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the insurance policy to the workplace or workers, the claim of Cenvat credit on service tax paid in respect of insurance service is not allowable. - Crane charges tor windmill blade replacement claimed in one of the appeal was not refuted by Revenue. Such activity is not strange to the windmill operation or set up. Blades being affixed to the windmill at a quite high level from the earth, using of service of crane for such purpose cannot be said to be without nexus to maintenance of the win .....

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E/00412/2008, E/00268/2010, ST/00432/2009 - Final Order Nos. 40505-40517/2015 - Dated:- 29-4-2015 - D N Panda, Member (J) And R Periasami, Member (T),JJ. ORDER Per: D N Panda: When the appeals listed below came up,concerned advocates appearing in those cases submitted a tabular statement showing the issues involved in each such appeal with the demand of duty and penalty involved therein as under:- Sl. No. Appeal No. Period Issue Demand Penalty 2 E/00328/2007 Oct 2004 to Jan 05 and Apr 2005 to M .....

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mill situated outside Factory 56,95,626 2,000 8 E/00326/2008 Sep 2006 & Oct 2006 Service charges for windmill 1,42,045 1,42,045 Jan-05 Workers Welfare policy 11,446 11,446 Oct-06 Passengers carrying package policy 2,431 2,431 9 E/00294/2008 Invoice No. 729 dated 14.09.2006 Cenvat Credit on capital goods (Gear Box for Windmill) 1,51,256 1,51,256 10 E/00401/2007 Aug 2005 to March 2006 Telephone installed outside factory and used by staff 6,248 30,000 Insurance paid towards fire policy of facto .....

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ervices 2,445 - 15 ST/00432/2009 Apr 2006 to Sep 2006 Maintenance service of windmill 18,218 - 2. Summarily,service tax/excise duty paid on following services/goods availed were claimed by the appellants as CENVAT credit which was denied by Revenue in the proceedings before the authorities below: - 1. Maintenance and service charges for windmill. 2. Annual operation and maintenance of windmill. 3. Crane charges for windmill blade. 4. Lease rental. 5. Term loan processing charges for purchase of .....

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t in respect of both input and input services used insetting up of windmill, generation of power and maintenance as well as operation thereof. 4.To support their claim of Cenvat credit on the above services availed and capital goods acquire dall the Appellants submitted that para 2 to 6 of the above said final order being relevant that equally applies to the present appeals. Revenue agreed to such proposition. 5.1 In view of the agreement of both sides on both facts in issue and law, the said pa .....

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nce of any material on record to the contrary, above proposition of appellants remained un-controverted by Revenue. 4. Power shortage is well known to the economy. Hydro power, thermal power as well as wind energy are normally generated at a place nearness to the source of raw material. Wind energy is generated at the place where wind is available and reciprocal arrangement is made with Electricity Board for bartering the energy so generated. This is an accepted phenomena since power/energy gene .....

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014. The Hon'ble Court examining the meaning of the input' under Cenvat Credit Rules, 2004 and admissibility of credit of tax on such input held that there should not be inadmissibility of input credit on input or input services used by wind mills to generate energy which is made available through electricity board under barter system. 6. For the reasoning above and in absence of any materials on record showing energy generated by wind mills was used for the purpose other than manufactur .....

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oth sides that Tribunal in the above said final order has dealt this issue in para 10 of its order and allowed even Cenvat credit on the rent paid. For appreciation of the reasoning, the said para is reproduced below:- "10. In appeals at Sl. No. 106 & 107 of the cause list, ld. Counsel says that these two appeals have been filed by Revenue against cenvat credit of service tax paid on lease rental allowed by the authority below. Record reveals that rent paid is directly attributable to t .....

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ission placing any cogent evidence to the contrary to establish that there is no integral relation between the security services availed to protect the windmill and ensure operation thereof. Accordingly, Cenvat credit on this count is also allowed. 9. The term-loan processing charges suffered service tax. Cenvat credit of such tax was claimed. Authority below has no findings to show that the processing of term-loan related to any other acquisition or activity,not connected to purchase of wind mi .....

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taken to protect them from various health hazards is obligation of the employer under the Factories Act. Accordingly, service tax paid in respect of such services is considerable tor allowance of Cenvat credit. Revenue does not dispute to such claim since there was no evidence on record to show that policy relates to any other property or contingency.Accordingly, the Cenvat credit relating to service tax paid on availing insurance services for workers is allowable. 11. In one of the appeals, Ce .....

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edit of duty paid thereon is allowable. 13. The telephone installed outside factory and used by staff is not backed by any evidence to show that such services were in anyway connected with output services or manufacture of the output.Accordingly, Cenvat credit of service tax paid to avail such service is not allowable. 14. There is a claim of insurance paid towards fire policy of factory-residential colony. Nothing was brought to record to show that the residential colony was for workers of the .....

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replacement claimed in one of the appeal was not refuted by Revenue. Such activity is not strange to the windmill operation or set up.Blades being affixed to the windmill at a quite high level from the earth, using of service of crane for such purpose cannot be said to be without nexus to maintenance of the windmill. Therefore, Cenvat credit in respect of service tax paid to avail the services of the crane is allowed. 17. There is a claim of availing club services, which are no way concerned for .....

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