TaxTMI 
TaxTMI 
2020 (4) TMI 879
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....ice vide C. No. V(72)13/HindaIco/Adjn/Ran-I/2016/12199 dated 15.12.2017 was issued to the Appellant alleging them of irregular availment and utilisation of CENVAT credit amounting to Rs. 82,23,747/- during the period of December, 2012 to May, 2015 on account of service tax paid under the reverse charge mechanism on GTA services for outward transportation of fly ash arising in course of generation of steam and electricity in their captive power plant. 2. The case was adjudicated by the Respondent vide the impugned order disallowing the alleged irregularly availed CENVAT Credit and ordered for recovery thereof under the provisions of Rule 14 of the Cenvat Credit Rules, 2004 (hereinafter referred to as the Rules) read with Section 11A....
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....y various precedent judicial pronouncements wherein it has been held and disposal of fly ash is an essential activity for smooth running of the business of the appellants and hence credit is available on such service. iv. That the cost of the impugned services utilised by the Appellant is included in the assessable value of the final product manufactured on which excise duty is paid by them and hence credit of service tax paid on the same should be allowed. v. That disposal of fly ash is a statutory requirement under the Environment Protection Laws and hence credit cannot be denied to them. vi. That there is no element of fraud, wilful misstatement, collusion or suppression of facts, or con....
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....e case cited supra, held that after the amendment of Rule 2(1) of the Rules w.e.f. March 1, 2008 whereby the words and phrases "from the place of removal" was replaced by the words and phrases "upto the place of removal", the services of GTA used beyond the place of removal is not admissible as input service. 7. The Appellant on the other hand has instantly contended that cleaning and removal of fly ash is an essential activity for smooth running of the business of the appellant. They have also cited a number of judicial pronouncements which held that without cleaning and removal of the fly ash, manufacturing activity cannot be carried on and hence the services used for such activities are used directly or indirectly in or re....
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....m the power plants and transportation thereof upto the place of disposal and final disposal thereof in accordance with the provisions of the relevant environmental laws merit to be considered as input services in terms of Rule 2(1) of the rules. 9. I find that there is no dispute that the fly ash is a hazardous waste and disposal thereof in a prescribed manner is a statutory obligation cast upon the Appellant by the Ministry of Environment and Forest. Thus in view of the judicial pronouncements cited by the Appellant discussed supra, all the taxable services utilized for removal of the fly ash from the power plant to the designated place of disposal as well as the services utilised in final disposal thereof merit to be consid....