Appellate Tribunal Allows Cenvat Credit on Service Tax for DG Set Overhauling

The Appellate Tribunal CESTAT, Ahmedabad allowed the appeal, holding that Cenvat credit on service tax for overhauling DG set in a power plant is admissible as electricity is dutiable. However, credit for cement brand price was not allowed as it was unrelated to the clinker unit.

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The Appellate Tribunal CESTAT, Ahmedabad allowed the appeal regarding disallowance of Cenvat credit on service tax paid for overhauling of DG set in a power plant. The Tribunal held that the credit is admissible as the final product, electricity, is dutiable. The credit for getting cement brand price was not allowed as it was not related to the clinker unit.

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