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TMI Blog2024 (6) TMI 1106X X X X Extracts X X X X X X X X Extracts X X X X ..... uring the production of Mettron - 22 (R 22) refrigerant gas. Under the CMD project, R-23 produced during the manufacture of R - 22 and normally released into the atmosphere, would be destroyed using thermal oxidation technology and the taxpayer would get CER points which are commonly referred to as Carbon Credits (CC for short) for such incineration; each of such CC being equal to one ton of carbon dioxide emission. The CC thus earned are tradable; such CER's could be exchanged, brought or sold in the international market at the prevailing market rates. The appellant had during the year earned CC in excess of the required level and hence, the same was sold at the international market using the services of EVIPL. The service tax paid by EVIP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity has inter alia held that the services of EVIPL were used by the assessee solely for the trading of carbon credits and, which is not used in anyway in connection with their manufacturing process. And for this reason, the original authority tried to distinguish the order of Delhi Tribunal. With regard to the activities relating to business, the original authority has opined that there is no nexus between the services utilised and the activities of manufacture of final products. It is against this order that the present appeal has been filed before us. 4. Heard Smt. Radhika Chandrasekar, learned Advocate for the appellant and Sri M. Selvakumar, learned Authorized Representative for the Revenue. 5. It is the contention of the assessee tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above, it is their further case that the show cause notice is issued proposing to demand the duty by invoking the extended period of limitation of five years, all the details have been picked up from the books of account and therefore, there was no scope whatsoever to allege suppression. Moreover, the credit availed was also recorded in the books from where it was picked up and therefore, there was nothing that was suppressed and consequently, the invocation of extended period of limitation was not in accordance with law. 9. Per contra, ld. Authorized Representative has supported the findings of the lower authority. 10. After hearing both sides and having perused the documents as well as orders relied upon during the course of arguments, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urer becomes eligible to earn CC towards CER norms of the Kyoto protocol. Learned adjudicating authority has analyzed the genesis of CC in the context of Kyoto Protocol which is undisputed at paras 11 to 14. 12. Viewed thus, we find that the order of Delhi Bench in the case of Shree Bhavani Paper Mills Ltd. (supra) would apply to the facts of the present case as well. The relevant paragraph in the said order reads as under: "I find no merits in the above contention of the Revenue. The services availed from M/s. Ernst & Young Pvt. Ltd., were admittedly for modernisation of the power plant of the appellant. Such power plant is used for manufacture of paper which is liable to Central Excise. In addition, if the appellant, by way of entering ..... X X X X Extracts X X X X X X X X Extracts X X X X
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