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TMI Blog2012 (12) TMI 741X X X X Extracts X X X X X X X X Extracts X X X X ..... hat said services of M/s. Ernst & Young Pvt. Ltd., were for the purpose of earning the credit. Show cause notice itself admits the factum that the consultancy service provided by M/s. Ernst & Young Pvt. Ltd., to the appellants was to facilitate them in installing projects of high technical equipments to the power plant in which fossil fuel like rich husk are used which reduces carbon emission. They again submitted that installing projects of high technical equipment is nothing but Modernisation of a factory and as per Cenvat credit Rules, 2004, services used in relation to modernisation are eligible for Cenvat credit. Admittedly, the main activity of the appellant is to manufacture paper for which electricity is used from captive power ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te about the payment of Service Tax by M/s. Ernst Young Pvt. Ltd., under the category of consultancy engineering services and use of such services by the appellant for modernising their plant. 3. The appellant had entered into the agreement with M/s. EDF Trading Ltd., a company organised under the laws of England having their registered office at 71, High Haiborn London, for C.D.M. Emission Reduction known as Clean Development Reductions for additional earning in terms of CERS. The additional earning was available if a company had or was to install project of high technical equipments in power plant, in which fossil fuel like rice husk etc. were used, which reduced carbon emission. The appellants were already having a power plant in whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of Certified Emission Reduction Sale of Carbon which was neither dutiable nor taxable, revenue initiated proceedings for denial of Cenvat credit. Accordingly, show cause notice dated 20.3.08 was issued for purposing denial of credit availed during the period 2006-07. The said show cause notice was adjudicated by the Additional Commissioner, Central Excise Lucknow confirming the demand along with confirmation of interest and imposition of penalty. The challenge to the said confirmation before Commissioner (Appeals) did not succeed and hence the present appeal. 5. After hearing both sides duly represented by Shri Hemant Bajaj, learned Advocate and Ms. Renu Jagdev , SDR it is seen that the services of M/s. Ernst Young Pvt. Ltd., were a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ust be either subject to excise duty or should be taxable under the Service Tax is nothing but a fallacy. The amount earned as a result of such service availed by the party is the income of the appellant and is not required to be leviable to Service Tax. As long as the services of consultancy engineering by the appellant are in relation to the development of the power plant, which in turn is used for manufacture of paper, such services get covered under the cover of definition of input services. In fact I note that show cause notice itself admits the factum that the consultancy service provided by M/s. Ernst Young Pvt. Ltd., to the appellants was to facilitate them in installing projects of high technical equipments to the power plant in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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