Rajhans Metals Pvt. Ltd. Vs Commissioner of Central Excise (Gujarat High Court)
Gujarat High Court held that the services received in respect of setting up the captive wind mill plant are eligible for the Cenvat Credit under rule 2(l) of the Cenvat Credit Rules, 2004. Accordingly, the writ petition is allowed.
Facts- The present Tax Appeal is filed u/s. 35G of the Central Excise Act, 1944 arising out of the final order dated 07.09.2007 passed by the Customs, Excise and Service Tax Appellate Tribunal, Ahmedabad. The substantial question involved herein is whether the CESTAT is correct in holding that the services received in respect of setting up the captive wind mill plant are not entitled for the Cenvat Credit under rule 2(l) of the Cenvat Credit Rules, 2004.
Conclusion- The appellant has utilised the electricity supplied by GEB against the electricity generated by Windmills and therefore, service tax paid by the appellant on the installation, erection and services in connection with maintenance of the Wind Mills are exclusively used in relation to manufacturing activity and therefore, the same would be squarely covered under the definition of “input service”, as the management, maintenance and repair of Windmills installed by the appellant would fall within “input service” as defined by clause (l) of Rule 2 read with Rule 4 of the Rules which provides that any input or capital goods received in factory or any input services received by the manufacturer of final product would be susceptible to Cenvat Credit.
