Parry Engineering & Electronics P Ltd vs C.C.E.-Ahmedabad-Ii on 4 September, 2015
7. I find that the Ld Commissioner (Appeals) had allowed Cenvat Credit of Service Tax paid on input services viz., Repair and Maintenance Service and Works Contract Services in relation to Repair and Maintenance service used for generation of electricity in Wind Mill situated away from the factory following the Larger Bench judgment in the case of Parry Engg & Electronics (P) Ltd vs CCE&ST Ahmedabad 1 2015(40)STR.243 (Tri LB), however, denied credit on other common input services used for maintenance of wind mill and also manufacturing activity. I do not find merit in denying credit on other input services common for manufacturing activity and running of the wind Mill, when credit of service tax paid on repair & maintenance service is allowed. In the show cause notice it is also alleged that the appellant had sold a part of the electricity generated in the wind mill, which the appellant had vehemently denied by producing evidences to the effect that no part of the electricity generated in the Wind Mill has been sold by them but the entire quantity is used in the factory premises of the Appellant. In support, the Ld Advocate has placed the relevant electricity bills paid by the Appellant after adjustments allowed for wheeling out of electricity to the grid of GETCO, generated at their wind mill. These evidences have not been examined. Therefore, only for the limited purpose of verification whether electricity energy generated at the Wind Mill was sold or otherwise, the matter is remanded to the Adjudicating Authority.