ACC Ltd Vs Commissioner of Central Tax, Bangalore (CESTAT Bangalore)
Summary: The Customs, Excise & Service Tax Appellate Tribunal, Bangalore Regional Bench, considered Central Excise Appeal No. 20025 of 2020 filed by ACC Ltd against Order-in-Appeal No. 157/2019-CT dated 30.09.2019 passed by the Commissioner of Central Tax (Appeal-II), Bangalore. The Final Order No. 20925/2026 was pronounced on 31.07.2026.
The appellant was a manufacturer of cement and used Fly Ash as raw material in the course of manufacturing. The Fly Ash was purchased from NTPC’s electricity generation plant. NTPC dumped the Fly Ash in a pond, from where the appellant was required to collect it at its own cost by arranging loading into trucks, transportation to its factory and unloading. The appellant was also required to maintain the Fly Ash Pond in accordance with the conditions specified by the Pollution Control Board.
The appellant availed CENVAT credit on services rendered at the Fly Ash Pond and on services used for loading, unloading, freight and movement of Fly Ash to its factory. It also took credit on inputs, input services and capital goods used for maintenance of the Fly Ash Pond.
The Department issued a Show Cause Notice for the period January 2016 to June 2017 on the ground that the services were rendered outside the appellant’s factory premises and, therefore, CENVAT credit was not eligible. After adjudication, a demand of Rs. 56,69,721/- was confirmed, which was subsequently affirmed by the Commissioner (Appeals).
