Generate professional replies to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Step 1 – Issue Identification & Review
The AI analyses your query, notice, order, or uploaded documents and identifies the key issues involved.
• Review the issues identified by the AI • Add, edit, remove, or refine issues as required
Step 2 – Draft Generation
Once you approve the issues, the AI performs issue-wise legal research and prepares a structured draft response.
• Relevant statutory provisions • Judicial precedents and Supreme Court, High Court and other citations • Issue-wise legal analysis • Practical arguments and supporting content • Professionally structured draft ready for further review.
Tribunal grants waiver & stay of recovery for service tax appeal involving Windmill Cenvat credit The Tribunal granted waiver of pre-deposit and stay of recovery for the demand and penalty until the final disposal of the appeal in the case involving ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tribunal grants waiver & stay of recovery for service tax appeal involving Windmill Cenvat credit
The Tribunal granted waiver of pre-deposit and stay of recovery for the demand and penalty until the final disposal of the appeal in the case involving admissibility of Cenvat credit for service tax paid on maintenance of a Windmill generating electricity away from the factory. The Tribunal found that the power generated by the Windmill and used in the factory of the assessee made the impugned credit prima facie admissible as it indirectly supported the manufacturing operations of the assessee.
Issues involved: Admissibility of Cenvat credit for service tax paid on maintenance of Windmill located away from the factory.
Summary: The case involved M/s. Rangammal Steels & Malleables seeking waiver of pre-deposit and stay of recovery of inadmissible Cenvat credit demanded from them for service tax paid on a Windmill generating electricity away from the factory. The lower authorities contended that credit for maintaining a Windmill generating non-excisable electricity is not admissible to the assessee engaged in manufacturing Brake drums. The appellants argued that the electricity generated by the Windmill is used in the manufacture of excisable goods, akin to capital goods credit for using a generating set within the factory.
In the stay application, the counsel for the appellants cited a judgment where credit for duty paid on explosives used in a captive mine was allowed as Cenvat credit, supporting the legitimacy of the impugned credit. On the other hand, the JDR referred to a Tribunal decision where similar credit for a Windmill located away from the factory was denied as Cenvat credit.
Upon considering the submissions, the Tribunal found that the power generated by the Windmill and used in the factory of the assessee made the impugned credit prima facie admissible. The maintenance of the Windmill indirectly supported the manufacturing operations of the assessee. Consequently, the Tribunal granted waiver of pre-deposit and stay of recovery for the demand and penalty until the final disposal of the appeal.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
AI Drafter ✕
TaxTMI 
