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Issues involved: The eligibility of the appellants to avail Service Tax credit paid by the service provider at the Windmill Farm, eligibility to avail credit on bank charges for securing a loan, and utilization of the credit for payment of duty on excisable goods cleared from their manufacturing unit.
Summary: The appeal addressed the eligibility of the appellants to claim Service Tax credit from the service provider at the Windmill Farm and on bank charges for securing a loan. The Lower Authority initially held that the manufacturing unit was not eligible for the credit due to the perceived lack of nexus between the service provider and the manufacture of excisable goods, as well as the physical distance between the units. The Commissioner (Appeals) further rejected the appeal, emphasizing the independence of the Windmill Farm unit and the manufacturing unit. It was highlighted that the power generated at the Windmill unit was supplied to a separate entity, PGVCL, and not directly to the manufacturing unit. The Commissioner relied on a previous judgment to support the decision that the appellants were not entitled to the claimed Cenvat credit. The advocate for the appellants acknowledged the alignment of the present case with previous Tribunal decisions but the appeal was ultimately rejected based on the established precedents. In conclusion, the appeal was dismissed, affirming the decision that the appellants were not entitled to avail the Service Tax credit in question.
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