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 as goods: service tax does not apply and proportionate cenvat credit reversal is required.
Electricity is treated as goods, not a service, and transmission/distribution by utilities is excluded from service tax. Supply of generated electricity for consideration is trading in goods and falls within State sales tax competence; historical excise classification supports electricity as excisable goods. Providers must reverse proportionate Cenvat credit where inputs relate to non-taxable or exempt supplies of electricity, following established precedent on credit apportionment.