Cenvat credit on windmill-generated power under barter with the Electricity Board was held admissible for manufacturing use.

Cenvat credit was admissible on inputs and input services used for windmill installation and maintenance where the windmill-generated power was exchanged with the Electricity Board under a barter arrangement to obtain equivalent power at the manufacturing unit. The Tribunal found the arrangement materially identical to an earlier decision in the assessee's favour and held that the windmill-related services were sufficiently connected with generation of power made available for manufacture. Credit was therefore allowed, the Revenue's appeals were rejected, and consequential relief followed in accordance with law.

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Issues: Whether Cenvat credit was admissible on windmill-generated power used under a barter arrangement with the Electricity Board for supply of equivalent power at the manufacturing unit.

Analysis: The Tribunal noted that there was no dispute that windmill installation and its maintenance were necessary for generation of power and that the generated power was exchanged with the Electricity Board to secure equivalent power at the place of manufacture. The factual position was held to be in line with the earlier decision in the assessee's favour, where credit on inputs or input services used by windmills to generate energy made available through the Electricity Board under a barter system was found admissible.

Conclusion: Cenvat credit was held admissible and the issue was decided in favour of the assessee.

Final Conclusion: The Revenue's appeals were rejected, leaving the assessee entitled to consequential relief in accordance with law.

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