TaxTMI 
TaxTMI 
2016 (11) TMI 1218
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....of Rs. 45,92,226/- in respect of input services such as Consultancy services, Erection & Commissioning Services etc., used in the installation of Electrical Power generation plant during the period from July, 2008 to July, 2011. It was further observed that the assessee had installed Power Plant with a capacity of 8 MW and the generation of Electricity was started in the month of October, 2010. The Electricity so generated by them was used in the manufacture of dutiable goods in their factory and a portion of the electricity was sold to M/s. Global Energy Private Ltd. and M/s. A.P. Power Distribution Company Ltd. The total Electricity generation for the year 2010-11 was 12107500 units out of which the assessee sold 9622581 units outside and....
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....products. The respondents herein had availed credit of input service used for setting up of captive power plant and major portion of the electricity generated was sold outside. He submitted that appellants therefore, are not eligible to take entire credit on the input services. 4. He submitted that the Commissioner(Appeals) has erred in relying upon the decision laid in the case of Sanghi Industries Ltd Vs 2009(13) STR 167-& the case Maharastra Seamless Ltd 2012-25-STR-167 (Tri.Mum). He also submitted that appellants are guilty of suppression of facts as they failed to disclose the details of availment of Cenvat credit. But for the scrutiny of records, by department Officers, the fact of irregular availment of credit on input services us....
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....tory, premises of provider of output service or an office relating 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; 8. From the above, it can be seen that any services used by a manufacturer whether directly or indirectly in or in relation to the manufacture of final products and clearance of final products upto the place of removal would be eligible for cr....
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....definition of 'input" brings within its fold, inputs used for generation of electricity or steam, provided such electricity or steam is used within the factory of production for manufacture of final products or for any other purpose. The important point to be noted is that, in the present case, excess electricity has been cleared by the assessee at the agreed rate from time to time in favour of its joint ventures, vendors etc. for a price and has also cleared such electricity in favour of the grid for distribution. To that extent, in our view, assessee was not entitled to CENVAT credit. In short, assessee is entitled to credit on the eligible inputs utilized in the generation of electricity to the extent to which they are using the produced....
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....nvat credit on such inputs/input services used in the generation of electricity which has been sold to MSEB. Therefore the appellant would be liable to reverse the credit, if any, taken on such inputs/input services which have been used in the generation of electricity which have been sold to MSEB. 10. The appellants in the instant case had availed credit of entire service tax on input services without maintaining separate accounts, though the electricity generated from the power plant was sold and supplied outside, and therefore, were eligible to take only proportionate credit. In view thereof, on merits, the issue stands answered in favour of the revenue. 11. The Ld. Counsel for respondent has put forward the ground of limitation al....