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2016 (1) TMI 546 - CESTAT AHMEDABAD

2016 (1) TMI 546 - CESTAT AHMEDABAD - 2015 (40) S.T.R. 243 (Tri. - LB) - Cenvat credit - input services - installation and erection, maintenance or any other services rendered at Windmills - located away from the factory premises and the electricity generated out of such Windmills is consumed at the factory premises after such power is put through the common grid. - Held that:- Hon’ble Bombay High Court in the case of Endurance Technologies Pvt. Ltd. [2015 (6) TMI 82 - BOMBAY HIGH COURT] held th .....

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11436-11437/2013 - Interim Order Nos. 344-353/2015-WZB/AHD - Dated:- 29-7-2015 - Shri P.K. Das, Member (J), H.K. Thakur, Member (T) and P.M. Saleem, Member (T) Shri D.K. Trivedi, S.R. Dixit, S.J. Vyas and V.B. Joshi, Advocates, for the Appellant. Dr. J. Nagori, Authorised Representative, for the Respondent. ORDER [Order per : P.K. Das, Member (J)]. - By Interim Order No. 3/WZB/AHD/2013, dated 30-9-2013, the matter was referred to the Hon ble President to constitute a Larger Bench to resolve the .....

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and erection, maintenance or any other services rendered at Windmills, which are located away from the factory premises and the electricity generated out of such Windmills is consumed at the factory premises after such power is put through the common grid. 2. Heard both the sides and perused the records. 3. For the proper appreciation of the case, we take up the facts of the case in Appeal No. E/871/2011 (M/s Parry Engineering & Electronics Pvt. Ltd. v. CCE Ahmedabad-II). In that .....

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nd availed Cenvat credit at their factory at Ahmedabad. It is contended by the appellant that the electricity generated by the Windmills located at Jamnagar was transferred by the Gujarat Energy Transmission Corporation Ltd. to their manufacturing unit at Ahmedabad. The appellant was using the electricity generated by the said Windmills indirectly for the manufacture of their final product, cleared on payment of duty. According to the Revenue, the appellant is not eligible to avail the Cenvat Cr .....

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uthority rejected the refund claim. The Commissioner (Appeals) also rejected the appeal filed by the Appellant and upheld the Adjudication order. The Commissioner (Appeals) passed the order following the decision of the Tribunal in the case of Rajhans Metals Pvt. Ltd. (supra). In that case, it has been held that CENVAT Credit of Service Tax, paid on erection/commissioning, maintenance or repair and storage charges in respect of set up Windmills for generation of electricity, away from the factor .....

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te on behalf of the appellant submits that the Revenue filed appeal before the Hon ble Bombay High Court against the decision of the Tribunal in the case of Endurance Technologies Pvt. Ltd. (supra) which was dismissed as reported in 2015-TIOL-1371-HC-MUM-ST (CCE Aurangabad v. Endurance Technology Pvt. Ltd.). The question of law before Hon ble High Court in the case of Endurance Technology Pvt. Ltd. (supra) are as under : - I. Whether the CESTAT is correct in holding that the assessee is ent .....

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nd Satara which were situated far away from the manufacturing unit and the appellant used the electricity generated at Windmills for the manufacture of final product. It can be safely stated that the electricity generated at Supa and Satara is the electricity used at Waluj. 6. The other issue is whether the assessee was entitled to avail Cenvat credit on the input services namely Management, Maintenance or Repair Service on Windmills installed by the manufacturer far away from the factory p .....

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at the factory premises. The judgments referred to above, also interpret the word input service in similar fashion. In the case of Commissioner of Central Excise, Nagpur v. Ultratech Cement Ltd. [cited supra], the Division Bench of this Court held that the definition of input service is very wide and covers not only services which are directly or indirectly used in or in relation to manufacture of final product but also includes various services used in relation to business of manufacture of fi .....

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r in relation to are words of width and amplitude. The subordinate legislation has advisedly used a broad and comprehensive expression while defining the expression input service . Rule 2(1) initially provides that input service means any services of the description failing in sub-clauses (i) and (ii). Rule 2(1) then provides an inclusive definition by enumerating certain specified services. Among those services are services pertaining to the procurement of inputs and inward transportation of in .....

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facturer directly or indirectly, in or in relation to the manufacture of final products. The inclusive part of the definition enumerates certain specified categories of services. However, it would be farfetched to interpret Rule 2(I) to mean that only two categories of services in relation to inputs viz. for the procurement of inputs and for the inward transportation of inputs were intended to be brought within the purview of Rule 2(I). Rule 2(I) must be read in its entirety. The Tribunal has pl .....

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