TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Wind Energy Barter System Case: Tribunal Dismisses Revenue Appeals, Emphasizes Essential Installation</h1> <h3>Commissioner of Central Excise, Coimbatore Versus M/s LG Balakrishnan & Bros Ltd.</h3> The Tribunal dismissed all Revenue's appeals in a case involving power generation using windmills for sharing with the Electricity Board on a barter ... Energy generate by windmills used for the purpose other than manufacture or providing of service - Held that:- There is no dispute by Revenue that the generation of power using windmill was to share the same with Electricity Board to avail the same quantum of power at the place of manufacture on barter system. There is also no dispute by Revenue that for generating power, installation of windmill is required and also maintenance thereof is inevitable. Considering all these aspects in a batch of appeals in the case of India Cements Ltd. Vs Commissioner of Central Excise and Others reported in [2015 (6) TMI 580 - CESTAT CHENNAI]. assessees had succeeded. Therefore, finding of fact in the present case not being dissimilar to the decision in the above case, all the Revenue's appeals are dismissed. Thus in absence of any materials on record showing energy generate by windmills was used for the purpose other than manufacture of providing of service, all the appeals listed in the aforesaid Sl. Nos. are allowed. Issues involved:- Dispute regarding generation of power using windmill for sharing with Electricity Board on a barter system.- Requirement of windmill installation and maintenance for power generation.Analysis:The judgment addresses the dispute raised by Revenue concerning the generation of power using windmills to share with the Electricity Board on a barter system. It is acknowledged that the installation and maintenance of windmills are essential for power generation. The decision is influenced by a previous case involving India Cements Ltd., where the assessees succeeded. The Tribunal finds the facts in the present case similar to the earlier decision, leading to the dismissal of all Revenue's appeals. The Tribunal emphasizes the necessity of reciprocal arrangements with Electricity Boards due to power shortages, especially in the context of wind energy generation. It is noted that wind energy is generated where wind is available, and arrangements are made to save and distribute this energy efficiently. The judgment also references a High Court case regarding the admissibility of input credit for windmills used in power generation under a barter system. The Tribunal concludes that without evidence showing energy generated by windmills being used for purposes other than manufacturing or service provision, the appeals are allowed, and any consequential relief shall follow as per the law.In summary, the judgment upholds the importance of wind energy generation through windmills and the necessity of arrangements with Electricity Boards for efficient utilization. It highlights the admissibility of input credit for windmills under a barter system and emphasizes the need for evidence to support claims regarding energy usage. The decision is based on precedent and aims to ensure fair treatment and compliance with relevant laws in cases involving power generation using windmills.
TaxTMI 
TaxTMI 
