TMI Blog2023 (1) TMI 737X X X X Extracts X X X X X X X X Extracts X X X X ..... removal of coal fly ash is admittedly connected with the production of power, which in turn, has nexus with the manufacturing of the Appellant s final product. Revenue s objection is that since the coal fly ash is non-excisable item, removal of the same cannot be held to be an input service, cannot be appreciated, inasmuch as the admissibility of the input service credit is not dependent upon the product, in respect of which services are availed, to be excisable or non-excisable. Admittedly the Appellant s final product was excisable and was cleared on payment of duty. In fact, the Appellant had been duly discharging appropriate Excise Duty on clearance of the Ash considering it as a finished product under the Central Excise Act, 1944. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Representative for the Respondent (s) ORDER The Appellants are aggrieved by the Order-in-Appeal No. 20- 21/CE/RKL-GST/2018 dated 15.02.2018 passed by the Ld.Commissioner(Appeals), GST, CX Customs, Bhubaneswar. 2. The facts of the case in brief are that the Appellant is a manufacturer of sponge iron/ingot/billet/TMT bars falling under Chapter 72 of the Central Excise Tariff Act, 1985. The Appellant has a captive thermal plant installed within the factory for production of electricity. The electricity produced is used for manufacture of dutiable final products on which the Appellant had discharged appropriate excise duty. In the course of production of electricity, Fly Ash is generated. Since the Fly Ash is detrimental to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commodity and cleared on payment of Central Excise duty, thus qualifying as a final product of the Appellant. As such, the credit of the input service was duly admissible. 4. The Department filed appeals before the Ld.Commissioner(Appeals), inter alia, on the ground that Fly Ash is not a final product of the Appellant and that the service of shifting the Fly Ash was not used in or in relation to manufacturing activities or clearance of the final product. Therefore, the said activity did not qualify as an input service. The Appellants refuted the said contentions of the Revenue before the Ld.Commissioner(Appeals) and also submitted a written note dated 31.01.2018. However, without considering the submissions of the Appellant, the Ld.Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment Ltd. v. CCE [2014 (34) STR 426 (Tri.-Del.)] (e) Jindal Steel Power Ltd. v. Commissioner [2018 (4) TMI 817-CESTAT New Delhi] (f) India Pesticides Ltd. v. Commissioner [2016 (8) TMI 724 CESTAT Allahabad] (g) CCE v. Shree Khedut Sakahari Udyog Mandli Ltd. [2012 (279) ELT 402 (Tri.-Ahmd)] 6. The Ld.Authorized Representative for the Department justified the impugned order and submits that the Appeal being devoid of any merits may be rejected. 7. Heard both sides and perused the Appeal records. 8. After hearing both the sides I find that the issue required to be decided in the present appeal is as to whether the services obtained by the appellant for removal of coal fly ash from the captive power plant which is used for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat removal and disposal of Fly Ash in a manner prescribed by the Government is a mandate requirement for continued production of electricity for activities used by the Appellant. In other words, without such due disposal of Fly Ash, generation of electricity cannot happen. 10. In view of these facts, it is not correct to say that the removal and disposal of Fly Ash is nothing to do with the manufacture of excisable goods. Admittedly, the electricity generated is captively consumed by the Appellant. Any input services or inputs used for such generation of electricity are necessarily to be considered as input service for final excisable goods. In view of these facts, I find that the impugned order cannot be sustained on merit, regarding d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ulratech Cement Limited and Another - 2010-TIOL-745-HC-Mum-ST = 2010 (20) S.T.R. 577 (Bom.) = 2010 (260) E.L.T. 369 (Bom.) laying down that necessary requisite for production of final product or relatable to any business activity of the assessee has nexus with the assessee s final activities to be held as cenvatabie service. 14. By applying the ratio of the above decisions to the facts of the present case, I am of the view that removal of coal Fly Ash is one of the necessity for running of the captive power plant. Without such removal of the coal fly ash from the captive power plant, the same cannot operate and run, in which case, the power won t be generated and the appellant would not be in a position to manufacture their final produc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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