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TMI Blog2018 (5) TMI 399X X X X Extracts X X X X X X X X Extracts X X X X ..... ally connected with the business of manufacturing the final product - credit allowed - appeal allowed - decided in favor of appellant. - E/812/2010 - A/86137/2018 - Dated:- 19-4-2018 - SHRI RAMESH NAIR, MEMBER (JUDICIAL) AND C.J. MATHEW, MEMBER (TECHNICAL) Ms. Manasi Patil, Advocate, for Appellant Shri Des. Chavan, Supdt. (AR), for Respondent Per: Ramesh Nair The facts of the case are that the appellants have availed CENVAT Credit in respect of repair and maintenance service used for Windmills located outside the factory. The electricity generated through windmill in turn used by the appellant. The Revenue has denied the CENVAT Credit. 2. Ms. Manasi Patil, learned Counsel appearing on behalf of the appellant sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... engaged in manufacturing of excisable goods falling under Chapter 73 of Central Excise Tariff Act, 1985. They availed CENVAT credit amounting to ₹ 3,45,836/- and Rs. on various services rendered for their wind mill farm situated in Satara District. During the audit of CENVAT records of the appellant, department found that the appellant is not eligible for CENVAT credit, on the service tax paid on the inputs services used' at their wind mill situated at satara, and availed at their manufacturing unit at Raigad. The proceedings against them were initiated accordingly. The lower adjudicating authority confirmed the various proposals in the show-cause notice. The appellants challenged the same before the Commissioner (Appeals), who u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Bombay in the case of Commissioner of Central Excise, Nagpur v. Ultratech Cement Ltd. - 2010-TIOL-745-HC-MUM-ST = 2010 (20) S.T.R. 577 (Bom.) = 2010 (260) E.L.T. 369 (Bom.). 4. The learned JDR reiterates the findings of the lower authorities. He submitted that the electricity generated at wind mill at Satara has no nexus between the manufacture of final products. He placed reliance on the Tribunal's decision in the case of Rajhans Metals Pvt. Ltd v. Commissioner of Central Excise, Rajkot - 2007 (8) S.T.R. 498 (Tri.Ahmd.) wherein it was held that services used at the site of the wind mills cannot be held as input services by the unit situated at different place. He also placed reliance on the Tribunal's decision in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal. From the above it follows that the said definition not only covers services which are used directly or indirectly in or in relation to manufacture of final products and also includes other services, which have direct nexus or which are integrally connected in business of manufacture of final products. 6. Input services were rendered for maintenance of wind mills for generation of electricity is not in dispute. The electricit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, is provided. The Hon'ble High Court in the case of Ultratech Cement Ltd (supra) has held that the definition of input service read as a whole makes it clear that the said definition not only covers services, which are used directly or indirectly in or in relation to the manufacture of final product, but also includes other services, which have direct nexus or which are integrally connected with the business of manufacturing the final product. An the case of Commissioner of Central Excise, Nagpur v. Ultratech Cement Ltd - 2010-TIOL-1227- CESTATMUM 2011 (21) S.T.R. 297 (Tri. - Mum.), this Tribunal has held that the denial of CENVAT credit on the ground that services were not received by the respondent in factory premises is not su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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