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TMI Blog2012 (8) TMI 529X X X X Extracts X X X X X X X X Extracts X X X X ..... d they receive electricity for this factory from their wind mill at Dewas through wheeling arrangement in terms of their agreement with M.P. State Electricity Board. In the case of M/s. Orissa Concrete & Allied Industries Ltd., the appellant's factory located at Raipur receives electricity from their wind mill at Dewas, through wheeling arrangement in terms of their agreement with the electricity board. In both the cases, the appellant in respect of their wind mills in Dewas availed the services of erection, installation and commissioning, repair and maintenance and also insurance and took Cenvat credit of the Service tax paid on these services. The department was of the view since the wind mills are located far away from the factory and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State Electricity Board itself shows that the appellant sought permission for installation and running of wind mill generator, at Dewas for captive use and the permission granted by the electricity board was also for generation of electricity by the wind mill for the captive use of the appellant, that this is not the case where the electricity generated by the appellants was sold to the electricity board and the appellants, thereafter, purchased electricity from the electricity board, that though the appellant's agreements with M.P. Electricity Board are titled "Power Purchase Agreement", from the perusal of the agreements, it will be clear that these are the agreements for transmission of the electricity generated by the wind mill after d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ech Cement Ltd. reported in 2010 (20) S.T.R. 577 (Bom.) = 2010 (260) E.L.T. 369 (Bom.) was not considered, and that in view of this, the impugned orders are not correct. 2.2 Shri B.L. Soni, the learned Senior Departmental Representative defended the impugned order by reiterating the findings of the Commissioner (Appeals) and pleaded that the Tribunal in the case of Rajhans Metals Pvt. Ltd. v. C.C.E., Rajkot (supra) and also in the case of Atul Auto Ltd. v. C.C.E., Rajkot reported in 2009 (237) E.L.T. 102 (Tri.- Ahmd.) = 2010 (20) S.T.R. 275 (Tribunal) has taken a contrary view and has held that when electricity generated by wind mill situated far away from factory premises is transferred to independent State Government company and equ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctricity Board it is seen that the wind mills are mentioned as for captive use by the appellant. Since, the wind mill are located far away from the factories, the power cannot be transmitted directly and the appellant would necessarily have to enter into an agreement with the State Electricity Board for its transmission. In both these cases, it is seen that the appellants had entered into the agreements with the M.P. State Electricity Board for transmission of power under which the electricity generated by the wind mills is first transferred to the M.P. Electricity grid and, thereafter, the M.P. State Electricity Board supplies 98% of that power to the appellants after deducting 2% power as wheeling charges. In view of this, I hold that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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