2018 (4) TMI 1384

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....ch 2010 the appellant had taken and utilized Cenvat credit of service tax of Rs. 1,02,903/- in respect of O&M/ Repair & Maintenance/Insurance charges for two wind mills situated in Jaisalmer District i.e. far away from the factory situated at Bhiwadi. The Adjudicating Authority has disallowed Cenvat credit of Rs. 1,02,903/- on the ground that operation, maintenance, repair and insurance charges of windmill installed out side the factory premises is not input service as per Rule 2 (l) and therefore credit availed thereon is recoverable under Rule 14 of Cenvat Credit Rules, 2004 and also imposed a penalty of Rs. 1,02,903/- under Rule 15 (1) of the Cenvat Credit Rules, 2004. 2. The Revenue is in appeal against the impugned order in appeal of ....

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.... ' and ' Jaipur Vidyut Vitran Nigam Limited (JVVNL). ' 6. Under this agreement, the appellant company has agreed to set-up the windmill for generation of power and inject the same in the grid maintained by the JVVNL. In exchange, the appellant is entitled to draw power at their Bhiwadi unit. Furth er, para 5,6 & 7 of the agreement provides as follows: "5. Wheeling and Banking of Energy i) Keeping in view the GoR Policy, the Power Producer shall be free to use the power for their captive, consumption at their unit viz M/s Kajaria Ceramics Ltd., 19 K.M. Stone, Bhiwadi, Alwar Road via Gallpur (Tapukara), Dist. Alwar (Rajasthan) after paying wheeling charges @ 10% of the energy fed into grid to RVPN/Discom(s). The power producer shall obta....

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....our (24) hours of such reading of the main metering system or back up metering system as the case may be. iv) Developer/power producer shall ensure to furnish the following of the time of submission of first invoice, subsequent to signing of agreement: a. Date of connection to common delivery point and permission letter of authority authorizing the interconnection. b. Reading of new meter(s) recorded at the time of installation. c. Details of free energy, if any, injected in the system between date of connection and COD. 6.2 Sealing and Maintenance of Meters. i) The RVPN/Discom shall seal the main metering system and the backup metering system in the presence of representatives of Power Producer/Developer. ii) When then Main Met....

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....wards captive use by Power Producer. The detailed account of units generated and used for captive use shall be kept in a passbook & or subsidiary passbooks and such passbooks shall be used for adjustment of bills. ii) Jaipur Discom shall prefer monthly bills as per applicable Tariff Rate for the electric power made available and energy supplied to the scheduled captive user out of their system after accounting for the energy delivered by Power Producer for captive use. It is clarified that the scheduled captive user shall continue to be the consumer of Jaipur Discom and shall liable to pay minimum bills, fixed charges, excess demand surcharge, power factory surcharge and any other charges leviable and as may be applicable from time to time....