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TMI Blog2022 (11) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... d the respondent draws the same quantity of electricity at Chennai. There is no allegation in the Show Cause Notice that any excess electricity has been sold to any other party. The respondent has availed credit on the lease rental which is calculated on the basis of the electricity consumed by them. Electricity being in a nature which cannot be transported in an ordinary manner, the respondent has made the facility of transmitting it through TNEB grid and drawing it at Chennai. It is not in dispute that the said electricity is supplied to the factory of the respondent and the same is used for manufacturing activity. Merely because the wind generation plant is situated far away from the manufacturing activity, credit cannot be denied. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit and also recover the same along with interest and for imposing penalty. After due process of law, the original authority confirmed the demand along with interest and imposed penalty of Rs.2,000/- in terms of Rule 15 of CENVAT Credit Rules, 2004. Against such order, the respondent filed appeal before the Commissioner (Appeals) who vide the order impugned herein set aside the order passed by the lower authority and held that the respondent is eligible for credit. Aggrieved by such order, the department is now before the Tribunal. 2. The learned AR Shri R. Rajaraman appeared and argued for the department. He submitted that the windmill is situated at Udumalpet, Coimbatore and the manufacturing activity is taking place at Sembiam which i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble. On perusal of the Show Cause Notice, it is seen that the electricity generated by the windmills is transmitted to the Udumalpet TNEB Grid and the respondent draws the same quantity of electricity at Chennai. There is no allegation in the Show Cause Notice that any excess electricity has been sold to any other party. The respondent has availed credit on the lease rental which is calculated on the basis of the electricity consumed by them. Electricity being in a nature which cannot be transported in an ordinary manner, the respondent has made the facility of transmitting it through TNEB grid and drawing it at Chennai. It is not in dispute that the said electricity is supplied to the factory of the respondent and the same is used for manu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsferred to the power grid of TNEB and equal quantity of electricity is drawn from the power grid of TNEB to the factory of the assessee, it cannot be construed that it is in relation to manufacture or clearance of final product whether directly or indirectly, as there exists no nexus between the windmills located outside the factory and the production process. Therefore, the Assessing Officer proposed that the assessee was not eligible to avail Cenvat credit on service tax paid on lease rentals and operations and maintenance charges. Therefore, it was proposed that the assessee has contravened Rule 2(l)(ii) of the Rules, inasmuch as they have wrongly availed credit. Further, the respondent invoked the extended period of limitation under pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilable. Therefore, such an interpretation if to be accepted, would defeat the very concept of generation of green power in the country. Therefore, this interpretation should lean towards the sustenance of such environmental friendly measures for which the Government has granted certain special concessions. xxxxx xxxxxx xxxxxx 25. As already pointed out, there is no dispute that the electricity generated by the windmills are exclusively used in the manufacturing unit for final products, there is no nexus between the process of electricity generated and manufacture of final products and there is no necessity for the windmills to be situated in the place of manufacture. Further, as already noticed, the definition of input service i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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