TaxTMI 
TaxTMI 
2019 (9) TMI 1194
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....o Appeals, therefore I am also disposing of both the Appeals by this common order. 2. The issue is whether the Cenvat Credit in respect of the inputs and capital goods purchased by the Appellants for setting up its Fly Ash Handling Plant at the site of Chandrapur Super Thermal Power Station (CTSPS), for exclusive use by the Appellants for manufacture of cement in their factory, can be denied to the Appellants merely on the ground that the said Plant is not situated within the factory premises of the Appellants? 3. It is not disputed that the Cenvat credit was denied to the Appellant only on the ground that the capital goods in question was not installed or utilized in the Appellant's cement factory. According to the department since t....
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....ds/inputs were used in setting up the Fly Ash Handling Plant like Fly Ash Loading System, Central Control System, Fly Ash Silo, Valves, Weigh Bridge etc. He also submitted that although the aforesaid plant was set up at the site of Chadnrapur Super Thermal Power Station (CSTPS) but the fly ash from the aforesaid plant is exclusively used by the appellants for manufacturing of dutiable products. The fly ash is not at all supplied to any other person/entity. The said Fly Ash Handling Plant is nothing but a captive plant. He also submitted that it is an extension of the factory of the appellants which is away from the factory premises of the appellants. In other words Fly Ash Plant is essentially integrated unit of the appellants manufacturing....
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....submissions and gone through the case records including the decisions cited from both sides. During the course of hearing I have been informed by the learned counsel for the appellants that for the subsequent period i.e. February, 2009 to March, 2013, in Appellants own case for the same Plant, the Cenvat credit on capital goods used in the Fly Ash Handling Plant was allowed by the Commissioner (Appeals), Nagpur vide Order-in- Appeal dated 18.12.2018 in Appeal No. NGP/EXCUS/000/APPL/318/18-19/2314. He also handed over the copy of the said Order-in-Appeal during the course of hearing in the instant matter. The relevant paragraphs of the said order are as under:- "xxx xxx xxx 36. The issue before to be decided is whether the ....
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....ufacture of final product-Absence of any provision in Cenvat Rules which stipulates input services to be used in the factory and not at the different place- Services rendered for maintenance of wind mill integrally connected with the manufacture of final product and hence, eligible for Cenvat credit-rules 2(l)(ii), 4(1) and 4(7) of Cenvat Credit Rules, 2004. 39. In the instant case, the appellant's Fly Ash Plant is located 60 kms away from the factory in the premises of M/s CSTPS and it is exclusively used by the appellant's factory only and is not at all supplied to any other customers. Thus applying the ratio of the judgement of the Hon'ble Supreme Court cited above, the Cenvat credit on capital goods used in the Fly Ash Plant wh....
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....ve plant and therefore in view of the aforesaid decisions of the Hon'ble Supreme Court, the Appellants are entitle for the Cenvat Credit. The purpose of extending credit of the duty paid on capital goods, inputs and input services is to avoid the cascading effect of double taxation on the finished goods. But, the extent of credit admissible, is regulated and prescribed under Cenvat Credit Rules, 2004. To be eligible for Cenvat Credit, the inputs/capital goods have to be used in the factory for use in manufacture of final product. In view of the material placed on record there is no doubt that the fly ash produced in the Plant in question exclusively used in the factory of the appellants. Although the recent decision of the learned Commissio....