TMI Blog2018 (3) TMI 1375X X X X Extracts X X X X X X X X Extracts X X X X ..... input service effective from 01.04.2011 - credit allowed. Utilization of services in the wind mill - Held that: - such wind mill is a captive mill dedicated entirely for supplying the electrical energy to the appellant for accomplishing its manufacturing activity. It is only for the technological requirement that the wind mill should be located at a place in the higher altitude; the appellant had installed such mill outside its factory premises and used generated electricity there from for its manufacturing activity - service tax paid on the taxable service used in the wind mill cannot be denied to the appellant. Appeal allowed - decided in favor of appellant. - E/51818/2017 [SM] - A/50908/2018 - Dated:- 27-2-2018 - Mr. S.K. Mohan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ace in the definition of input service with effect from 01.04.2011 and thus, the disputed services cannot be considered as input service for the appellant under the amended definition. 2. Ld. Advocate appearing for the appellant submits that the services availed by the appellant towards telephone, insurance and maintenance of vehicle are integral part of the manufacturing activity and accordingly, falls under the definition of input service for availment of Cenvat credit. To support such stand, the ld. Advocate has relied on the Final Order No.50541/2018 dated 05.02.2018 passed by this Tribunal in the case of appellant itself, wherein Service Tax paid on telephone service was allowed to the appellant. With regard to input service receive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice, the appellant cannot smoothly transact its business of manufacturing as well as selling of its goods. Since the said services have nexus with the purpose, for which the appellant has setup its manufacturing unit, the same should be considered as input service under the amended definition of input service effective from 01.04.2011. I find that this Tribunal vide order dated 05.02.2008 (supra) in the case of appellant, has extended the cenvat benefit on telephone service, holding that such service is an integral part of the manufacturing activity. Therefore, I do not find any merits in the impugned order in disallowing the cenvat credit on such taxable services. 6. With regard to utilization of services in the wind mill, which is loc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n established with the permission of the M.P. State Electricity Board and from the permission given by the M.P. State Electricity Board it is seen that the wind mills are mentioned as for captive use by the appellant. Since, the wind mill are located far away from the factories, the power cannot be transmitted directly and the appellant would necessarily have to enter into an agreement with the State Electricity Board for its transmission. In both these cases, it is seen that the appellants had entered into the agreements with the M.P. State Electricity Board for transmission of power under which the electricity generated by the wind mills is first transferred to the M.P. Electricity grid and, thereafter, the M.P. State Electricity Board su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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