2010 (1) TMI 1149 - HC - Service Tax

Maintainability of appeal - appropriate forum - CENVAT credit - operation, maintenance of captive wind mill plant - Held that - this Tax Appeal filed u/s 35-G of the CEA, 1944, is admitted, as the issue involves question of law and the questions of law referred to hereinabove are formulated for determination and consideration of this court - appeal admitted.

Summary

Issues:
1. Entitlement to Cenvat credit for services related to the operation and maintenance of a captive wind mill plant.
2. Qualification of services as input service under the Cenvat Credit Rules, 2004.
3. Entitlement to Cenvat credit for services related to the generation of electricity used in manufacturing dutiable products.

Analysis:

Issue 1: Entitlement to Cenvat credit for services related to the operation and maintenance of a captive wind mill plant:
The Tax Appeal was admitted by the Gujarat High Court concerning the denial of Cenvat credit for services related to the operation and maintenance of a captive wind mill plant. The appellant raised a substantial question of law challenging the correctness of CESTAT's decision on this matter. The court agreed to consider this issue and formulated it for determination.

Issue 2: Qualification of services as input service under the Cenvat Credit Rules, 2004:
Another substantial question of law raised in the appeal was whether the services in question qualified as input services under the Cenvat Credit Rules, 2004. The appellant contested the rejection of their appeal by CESTAT on the grounds that the services needed to be received in the factory of production to qualify as input services. This issue was also admitted by the High Court for consideration.

Issue 3: Entitlement to Cenvat credit for services related to the generation of electricity used in manufacturing dutiable products:
The third issue involved in the appeal was the entitlement to Cenvat credit for services related to the generation of electricity used in or in relation to the manufacture of dutiable products. The appellant challenged the rejection of their appeal by CESTAT on this basis. The High Court admitted this issue for determination and consideration along with the other questions raised in the appeal.

In conclusion, the Gujarat High Court admitted the Tax Appeal and agreed to consider the substantial questions of law raised by the appellant regarding the entitlement to Cenvat credit for various services under the Central Excise Act, 1944. The court directed the appellant to file additional documents within a specified timeframe and scheduled the appeal to be heard along with another related Tax Appeal.