9911796707
TMI Blog2008 (11) TMI 666X X X X Extracts X X X X X X X X Extracts X X X X ..... pellants is eligible to avail the Service Tax credit on Bank charges for securing loan from the Bank for purchase of wind mill. Also, whether the appellant is eligible to avail the said credit and utilize the said credit for payment of duty of the excisable goods cleared from their manufacturing unit or not. The Lower Authority in his OIO held that the manufacturing unit is not eligible to avail the service tax credit of the Windmill Farm unit on the grounds that there is no nexus between service provider and the manufacture of excisable goods of manufacturing unit and these both are independent transactions and the distance is 100 kms. away from each other. The Lower Authority has confirmed the demand, appropriated the credit already rever ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dra with the electricity if generated in their manufacturing unit for captive consumption and tried to compare the electricity generated at Wind Farm unit as an intermediate product as if it is produced at their factory for manufacture of excisable goods at Jamnagar. As already explained in preceding paragraphs, neither the power generated at Windmill Farm unit can be termed as an intermediate product for their unit at Jamnagar nor it is termed as captive generation of electricity for manufacture of final products. The appellant's plea that under the explanation to the definition of the input services i.e. directly or indirectly used in relation to manufacture of final products under Cenvat Credit Rules is in no way connected to the present ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the factory at Jamnagar in or in relation to manufacture of final product nor they have used in relation to setting up, modernization, renovation or repairs of a factory etc., at their factory premises so as to claim any input service credit. The service tax credit pertaining to erection and commissioning of Windmill Farm unit at Navadra village definitely is service rendered at Windmill Farm unit which is in all respect independent for the reasons already explained in the preceding paragraphs. The appellant's company having adjustment of electricity in the form of credit with the PGVCL which is also an independent State Govt. company cannot be treated as input services rendered in or in relation to manufacture of final products under Cenv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not available even at the premises of the wind mills. Cenvat credit claimed is inadmissible and the order of the Commissioner in this regard deserves to be upheld." In the above said order, the Hon'ble Tribunal has clearly held that as the electricity is not excisable, the Cenvat credit is not available even at the premises of the wind mills and therefore, the appellants is not eligible to avail Cenvat credit claimed in this regard. The ratio of the above judgment squarely applies to the present appeal as the issues are identical in nature, accordingly the appellants are not entitled to avail the Cenvat credit in the present case." Learned advocate Shri P.V. Sheth fairly agrees that the issue is squarely covered by the earlier decisions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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