2008 (11) TMI 666

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....amnagar, Gujarat and whether the appellants is eligible to avail the Service Tax credit on Bank charges for securing loan from the Bank for purchase of wind mill. Also, whether the appellant is eligible to avail the said credit and utilize the said credit for payment of duty of the excisable goods cleared from their manufacturing unit or not. The Lower Authority in his OIO held that the manufacturing unit is not eligible to avail the service tax credit of the Windmill Farm unit on the grounds that there is no nexus between service provider and the manufacture of excisable goods of manufacturing unit and these both are independent transactions and the distance is 100 kms. away from each other. The Lower Authority has confirmed the demand, ap....

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....tricity generated at their Windmill Farm unit, Navadra with the electricity if generated in their manufacturing unit for captive consumption and tried to compare the electricity generated at Wind Farm unit as an intermediate product as if it is produced at their factory for manufacture of excisable goods at Jamnagar. As already explained in preceding paragraphs, neither the power generated at Windmill Farm unit can be termed as an intermediate product for their unit at Jamnagar nor it is termed as captive generation of electricity for manufacture of final products. The appellant's plea that under the explanation to the definition of the input services i.e. directly or indirectly used in relation to manufacture of final products under Cenvat....

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....Jamnagar and neither they have used any services in the factory at Jamnagar in or in relation to manufacture of final product nor they have used in relation to setting up, modernization, renovation or repairs of a factory etc., at their factory premises so as to claim any input service credit. The service tax credit pertaining to erection and commissioning of Windmill Farm unit at Navadra village definitely is service rendered at Windmill Farm unit which is in all respect independent for the reasons already explained in the preceding paragraphs. The appellant's company having adjustment of electricity in the form of credit with the PGVCL which is also an independent State Govt. company cannot be treated as input services rendered in or in r....