2011 (7) TMI 505

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....ved in both the appeals is common, therefore, they are taken up together for disposal.   2. Briefly stated facts of the cases are that the manufacturing unit of the appellant is located in Nagothane, Raigad District and they are engaged in manufacturing of excisable goods falling under Chapter 73 of Central Excise Tariff Act, 1985. They availed CENVAT credit amounting to Rs.3,45,836/- and Rs.4,25,185/- on various services rendered for their wind mill farm situated in Satara District. During the audit of CENVAT records of the appellant, department found that the appellant is not eligible for CENVAT credit on the service tax paid on the inputs services used at their wind mill situated at Satara and credit availed at their manufacturing ....

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....nexus or connection in relation to manufacture of the goods. In support of their contention, she relied on decisions of the Tribunal in the case of Indian Rayon & Industries Ltd. 2006 (4) STR 79 (Tri-Mum) and Hon ble High Court of Bombay in the case of Commissioner of Central Excise, Nagpur Vs. Ultratech Cement Ltd. 2010-TIOL-745-HC-MUM-ST.   4. The learned JDR reiterates the findings of the lower authorities. He submitted that the electricity generated at wind mill at Satara has no nexus between the manufacture of final products. He placed reliance on the Tribunal s decision in the case of Rajhans Metals Pvt. Ltd. Vs. Commissioner of Central Excise, Rajkot -2007 (8) STR 498 (Tri-Ahmd) wherein it was held that services used at the sit....

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....g to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal.   From the above it follows that the said definition not only covers services which are used directly or indirectly in or in relation to manufacture of final products and also includes other services, which have direct nexus or which are integrally connected in business of manufacture of final products. ....

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....Rayon & Ind. Ltd. (supra) has held that no such stipulation regarding receipt of input service, which is separately defined under the Rules, is provided. The Hon ble High Court in the case of Ultratech Cement Ltd. (supra) has held that the definition of input service read as a whole makes it clear that the said definition not only covers services, which are used directly or indirectly in or in relation to the manufacture of final product, but also includes other services, which have direct nexus or which are integrally connected with the business of manufacturing the final product. In the case of Commissioner of Central Excise, Nagpur Vs. Ultratech Cement Ltd. 2010-TIO)-1227-CESTAT-MUM, this Tribunal has held that the denial of CENVAT credi....