SERVICE TAX

[bimal shah]

Dear Sir,

We have captive wind mill operated by Wind World India Limited. We use the power generation for our captive purpose & some time if there is excess power it is sold to the power utility.

is there any Service Tax involvement in this Under Rules 6(3) of Cenvat Credit Rules 2004.

Thanks.

Bimal Shah

AI Summary

Electricity from Captive Windmills Exempt from Service Tax; Classified as Goods, Not Services, Per Finance Act 1994 A query was raised regarding the applicability of service tax on electricity generated by a captive windmill, operated by Wind World India Limited, when excess power is sold to a utility. The response clarified that electricity is classified as 'goods' and not a 'service' under tax law, thus not subject to service tax. The transmission or distribution of electricity is also exempt from service tax as per the negative list in the Finance Act, 1994. It was noted that electricity is considered excisable goods, but currently, excise duty on electricity has been withdrawn. The discussion also referenced relevant legal precedents and Supreme Court decisions.