TMI Blog2018 (7) TMI 520X X X X Extracts X X X X X X X X Extracts X X X X ..... DER Per Shri Ajay Sharma : The instant appeal has been filed by the appellant from the impugned order dated 31.1.2018. 2. The brief facts of the case are that during the audit of records of the appellants conducted by the audit party of AG Audit, Rajasthan, it was observed that appellants have irregularly availed cenvat credit of service tax of ₹ 6,17,860/- on ineligible input services including hazardous handling service, operation and maintenance of wind mill, membership of clubs, group insurance of staff, life insurance of directors and employees for the period January, 2011 to March, 2015 on the ground that said services were not used in relation to manufacture of final products (i.e. processed fabrics). Out of the abov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith proviso to Section 11A(4) of the Central Excise Act, 1944 along with interest at applicable rate and that the total amount of ₹ 49,518/- and interest of ₹ 25,076/- already reversed /deposited by the appellant is liable to be appropriated in Government account. On the issue of extended period of limitation also the adjudicating authority held against the appellant. The following order was passed by the Adjudicating Authority: (a) I disallow the credit of service tax amounting to ₹ 5,42,169/- (including Education and S HS Education Cess) out of the total demand of ₹ 617860/- under the provisions of Rule 14 of Cenvat Credit Rules, 2001 read with proviso to Section 11A(4) of the Central Excise Act, 1944 and or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and learned AR appearing for the department and perused the record. 6. The word input service has been defined under Rule 2(1) of Cenvat Credit Rules, 2004 as under: input service means any service (i) used by a provider of taxable service for providing an output service; or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to manufacture of final products and clearance of final products from the place of removal and includes services, used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage up to the place of removal, procur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that various services received towards operating power service of wind mills were used for generating such electricity to be eventually used in the production of excisable goods in their factory only. As such, the services received towards operation and maintenance of wind mills are used by them directly or indirectly, in or in relation to the manufacture of final products and are falling under the scope of input service in terms of a definition of input service itself. 8. Learned AR appearing for the department submitted that electricity generated outside the factory is not brought directly to the factory for use but it was sold to the Electricity Board and factory used the electricity supplied by the Electricity Board. In cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had asked for the said records (for the period January, 2011 to March, 2015) nor they have produced those records before any of the authorities below. She requested for remand of the matter back to the adjudicating authority to decide the issue whether any power have been sold by the appellant to the Electricity Board after perusing the records to be submitted by the appellant before the adjudicating authority pertaining to the period January, 2011 to March 2015 regarding production of electricity by the appellant from wind mill at Jaisalmer and the electricity consumed by them for the production of excisable goods in their factory. On the issue of extended period of limitation, she contended that to allege suppression there has to have so ..... X X X X Extracts X X X X X X X X Extracts X X X X
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