9911796707
TMI Blog2008 (9) TMI 575X X X X Extracts X X X X X X X X Extracts X X X X ..... Held that: - Admissibility of credit relating to capital goods and services required for running the windmill whose output was available to run the assessee's factory cannot be ruled out without a debate - service tax paid on insurance premia cannot be treated as tax on a service used by PSPL in or in relation to the manufacture of final products and clearance of final products from the place of removal - waiver of predeposit and stay of recovery of the remaining amounts due from the appellant as per the impugned order till final disposal of this appeal - E/294 & 326/2008 - 833-834/2008 - Dated:- 19-9-2008 - Shri P. Karthikeyan, Member (T) REPRESENTED BY : Smt. L. Maithili, for the Appellant. Shri N.J. Kumaresh, SDR, fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with interest and imposing penalty was passed in respect of credit of tax on insurance service incurred in respect of policies for the welfare of factory workers. In the impugned order, the Commissioner (A) found that the definition of 'input services' did not cover the maintenance and repair service of the windmill in relation to the final products manufactured in the assessee's textile mill. The capital goods installed in the windmill could not be taken as part of the capital goods installed in the factory which participated in the assessee's manufacturing operations directly or indirectly. The insurance service incurred as a welfare measure extended to the employees could not also be considered as an 'input service' used by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pposes the prayer by the learned counsel. He submits that power generation in a windmill more than 500 kms away from the manufacturing factory could not be construed to be an activity which had a direct nexus with the assessee's manufacture of excisable goods. The assessee set up windmills and sold the power generated to TNEB. Like any other assessee, it purchased power from the TNEB to operate its factory. In the absence of the statutorily prescribed circumstances that qualify tax paid on gear box and service tax paid on Annual Maintenance Contract (AMC), both incurred towards running the windmill situated a couple of hundred kms away from the manufacturing facility could not be allowed as credit to the assessee. The work of the windmill a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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