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TMI Blog2018 (1) TMI 528X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal allowed. - E/41603 41605/2017 - Final Order No. 43388-43390 /2017 - Dated:- 21-12-2017 - Shri Madhu Mohan Damodhar, Member ( Technical ) Shri R. Parthasarathy, Consultant for the appellants Shri R. Subramaniyam, AC (AR) for the respondent ORDER The facts of the caser are that M/s. Chettinad Cement Corporation Ltd., the appellants herein, had availed Cenvat Credit on the basis of invoices raised by M/s. Saravana Co. Ltd. and Sh. A. Jayapal, Tuticorin, for the operation and maintenance of Silos installed by the tax payers at the premises of Mettur Thermal Power Plant (MTTP) and Tuticorin Thermal Power Plant (TTPP) respectively. The appellants had entered into a MOU with TNEB whereby they had to install the silos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led credit, with interest thereon and also proposing imposition of penalty under various provisions of law. In adjudication of these three SCNs, the original authority concerned confirmed the proposed demands with interest and also imposed penalties. On appeal, the Commissioner (Appeals) vide impugned orders Nos.43/2017 and 44/2017 both dated 28.03.2017 upheld the orders of the original authorities and rejected the appeals. Hence the appellants are before this forum. 2.1 Today when the matter came up for hearing, Ld. Consultant, Shri R. Parthasarathy, submits that they had installed PDFACS systems for collection of fly ash generated in MTPP and TTPP; that the appellants had issued work orders to the said contractors M/s. Saravana Co. L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice tax. The contractors have railed bills only for the services rendered to the appellants. g. The appellants submit that the identical issue of admissibility of input service tax credit for the service tax paid by the contractors who are managing the fly ash collection systems (PDFACS) installed by various cement plants in other parts of the country in the premises of thermal power stations near to their plants came up for disposal in the following rulings and it was held that the manufactures of cement were entitled to avail input service tax credit for the service tax paid by the contractors. a. RSWM Ltd. (Fabric Division) Vs. CCE Jaipur 2015 (37) STR 1074 (Tri.-Del). b. Ultratech Cement Ltd. Vs. CCE, Jaipur 2014 (34) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out that the contract is only for operation and maintenance and the appellants have not been able to sufficiently establish that the work orders issued by them also include the activity of collection of fly ash and transportation to their premises. 4. Heard both sides and gone through the facts. 5.1 Evidently, both the lower authorities in all these appeals have proceeded on the understanding that the credit amounts availed relate to the services only of operation and maintenance of the fly ash collection system installed by the appellants at MTPP and TTPP. The Commissioner (Appeals), in para-9 of the impugned orders No. 43/2017 and 44/2017, has observed that the appellants are entitled to lift only 80% of fly ash and leave the remain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h emerging from captive power plant is admissible. In Birla Corporation Ltd. Vs. CCE, Lucknow - 2014 (34) STR 589 (Tri.-Del.), the Tribunal held that fly ash generated continuously in Thermal Power Plant located 30 kms from the cement plant, extracted by fly ash extraction plant installed by the appellant therein, loaded in bulk trucks and transported to their cement plant, the cenvat credit of service tax involved in these activities cannot be denied. The facts of the appeals before me are parimateria to these in the Tribunal decision discussed supra. The cenvat credit has been denied by both the lower authorities in these appeals only on the ground that was only operation and maintenance service was installed. However, Ld. Consultant cont ..... X X X X Extracts X X X X X X X X Extracts X X X X
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