TaxTMI 
TaxTMI 
2012 (12) TMI 741
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....for payment of Service Tax. The appellant was availing the credit on various input services used in the manufacture of paper as also on the basis of credit distribution document and utilising the same for payment of Central Excise duty on clearance of their final product. 2. The appellants availed the credit of Rs. 5,70,423/- on the basis of invoices issued by M/s. Ernst & Young Pvt. Ltd., which was distributed by their head office. The said Cenvat credit was availed in respect of Service Tax paid by M/s. Ernst & Young Pvt. Ltd., under the category of consultancy engineering services. Such services were used for modernisation of their power plant as a measure of increasing efficiency and profitability of their plant. As a result of such se....
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....ts had paid Rs. 46,60,313/- as consultancy charges to M/s. Ernst & Young Pvt. Ltd., New Delhi on which a sum of Rs. 5,70,423/- was paid as service tax by M/s. Ernst & Young Pvt. Ltd., New Delhi. The amount of service tax of Rs. 5,70,423/- paid by M/s. Ernst & Young Pvt. Ltd., New Delhi had been availed as Cenvat credit by the appellant through their Head Office. The amount of Rs. 4,77,83,257/-had been shown as net earning in their Balance Sheet as 'other income' i.e. earning from Certified Emission Reduction Sale. From the above, it was clear the appellants had received this amount as a sale proceeds for less emitting carbon in the air which had been described by them as CERS in technical term. 4. By entertaining a view that the services o....
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....ice Tax and inasmuch as the services of E & Y were availed for earning of such credits, the appellant is not entitled to avail the credit. 6. I find no merits in the above contention of the Revenue. The services availed from M/s. Ernst & Young Pvt. Ltd., were admittedly for modernisation of the power plant of the appellant. Such power plant is used for manufacture of paper which is liable to Central Excise. In addition, if the appellant, by way of entering into an agreement with the England based company gets profit by way of earning carbon credit, it cannot be held that said services of M/s. Ernst & Young Pvt. Ltd., were for the purpose of earning the credit. I fully agree with the learned advocate that the above contention of the Revenue....