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Appellants manufacturing unit located in Raigad District — Input services for the maintenance of windmill located in Satara District — Electricity so generated was consumed for the manufacture of the final product — Such credit rendered ineligible — Proceedings initiated against appellant —As per appellant, there was no mandate in definition of input service that services be used in manufacturing factory alone — Maintenance of windmills — Eligible input credit — Appeal allowed.
Facts:
The appellant was a manufacturing unit engaged in manufacture of excisable good situated at Raigad. They took credit on maintenance services received for their windmill situated in Satara District and consumed electricity generated out of it for the production of final product. The credit taken for above-mentioned input service was disallowed. According to the revenue there was no nexus between the said input services and the final product manufactured by them and they placed reliance on the Tribunal’s decisions in the case of Rajhans Metals Pvt. Ltd. v. CCE, Rajkot, (2007) 8 STR 498 (Tri.-Ahd) and Indian Rayon Industries Ltd., (2006) 4 STR 79 (Tri.) wherein it was held that services used at the site of windmills cannot be considered as input services by unit situated at some other place.
Held:
Held that the input services were rendered for the maintenance of windmills for generation of electricity cannot be brought into dispute. Further, after the study of the input service definition, it was concluded that the said service falls under the definition of input service. As regards input service used at different place was concerned, it was pertinent that there was no mandate in law that it should be used in the factory. The cited decisions were distinguished stating that the decision in the case of CCE, Nagpur v. Ultratech Cement Ltd., (2010) 20 STR 577 (Bom.) was not available before the Tribunal including in the case of Rajhans (supra). Hence, appeals allowed.
