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TMI Blog2016 (8) TMI 584X X X X Extracts X X X X X X X X Extracts X X X X ..... he project relating to electricity generation cannot be considered as connected with the business of the appellant, which is manufacturing of cement, is narrow and unjustified. Further, the denial of credit, on the speculation that the electricity likely to be generated in such Solar Project could also be sold by the appellant, is not justified. - Decided in favour of appellant - Excise Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neration of electricity for their use in the manufacture of excisable products. The appellants claimed that in terms of the statutory regulation of the Government of Rajasthan regarding mandatory use of renewable energy by the manufacturers, the appellant engaged the service provider for consultancy in connection with setting up of a Solar Power Project. They have paid service tax on such consult ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is now in dispute. The lower authorities denied the credit on the ground that the Solar Power Project is proposed in a far away place in West Rajasthan and there is a possibility of the appellant selling the power to outsiders. There is no nexus between this activity and the manufacturer of the cement and as such, the credit is not available. I find that the reasoning followed by the lower auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, is not justified. The Tribunal vide Final Order No.40176 of 2015 dated 18.02.2015 in the case of Automotive Coaches and Components Ltd. allowed the credit in connection with setting up of business in Uttrakhand even though the unit could not come up later. Similar view was taken in Final Order No.40562/2015 dated 26.05.2015 - Packaging India Pvt. Ltd. The location of Solar Project cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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