TaxTMI 
TaxTMI 
2016 (1) TMI 546
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....rred to the Hon'ble President to constitute a Larger Bench to resolve the controversy arising out of the different views expressed by two Division Benches of the Tribunal in the case of Rajhans Metals Pvt. Ltd. v. CCE Rajkot - 2007 (8) S.T.R. 498 (Tri.-Ahmd.) and in the case of Endurance Technologies Pvt. Ltd. v. CCE Aurangabad - 2011 (273) E.L.T. 248 (Tri.-Bom.) = 2012 (27) S.T.R. 320 (Tri.-Bom.) The issue involved in these appeals is whether an assessee is eligible to avail Cenvat credit of an amount paid as Service Tax by service provider in respect of installation and erection, maintenance or any other services rendered at Windmills, which are located away from the factory premises and the electricity generated out of such Windmills is ....
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....and whatever electricity is generated is transferred to Gujarat Electricity Board, who in turn, is providing electricity to the Appellant and raising bills which is being consumed for manufacture of their goods. The Appellant reversed the credit at the instance of the audit officers and filed refund claim. The Adjudicating authority rejected the refund claim. The Commissioner (Appeals) also rejected the appeal filed by the Appellant and upheld the Adjudication order. The Commissioner (Appeals) passed the order following the decision of the Tribunal in the case of Rajhans Metals Pvt. Ltd. (supra). In that case, it has been held that CENVAT Credit of Service Tax, paid on erection/commissioning, maintenance or repair and storage charges in res....
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.... answered the question No. 2 in favour of the assessee, holding that the electricity generated at Supa and Satara which were situated far away from the manufacturing unit and the appellant used the electricity generated at Windmills for the manufacture of final product. It can be safely stated that the electricity generated at Supa and Satara is the electricity used at Waluj. 6. The other issue is whether the assessee was entitled to avail Cenvat credit on the input services namely Management, Maintenance or Repair Service on Windmills installed by the manufacturer far away from the factory premises. The Hon'ble High Court observed as under :- "5. On perusal of these Rules, it becomes clear that the management, mainten....
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....ed a broad and comprehensive expression while defining the expression 'input service'. Rule 2(1) initially provides that input service means any services of the description failing in sub-clauses (i) and (ii). Rule 2(1) then provides an inclusive definition by enumerating certain specified services. Among those services are services pertaining to the procurement of inputs and inward transportation of inputs. The Tribunal, proceeded to interpret the inclusive part of the definition and held that the Legislature restricted the benefit of Cenvat credit for input services used in respect of inputs only to these two categories viz. for the procurement of inputs and for the inward transportation of inputs. This interpretation which has been place....
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....se of ammonia is an intrinsic part of that process." 6. In view of this discussion, we have no hesitation to hold that the answer to Question No. (I) is in affirmative. Despite this settled position, learned Counsel for the appellant tried to submit that the judgment cited at Sr. No. (2) is being challenged before Supreme Court. This submission does not really help us in deciding the appeals. Both appeals are dismissed." 7. We find that the Hon'ble Bombay High Court in the case of Endurance Technologies Pvt. Ltd. (supra) held that Cenvat credit is eligible on maintenance or repair services of Windmills, located away from the factory. It is well settled that the decision of Hon'ble High Court is binding on the Tribunal.....