2025 (1) TMI 137

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....t the appellant is a manufacturer of cast Articles of Iron and Aluminium of a kind principally used in Motor Vehicles falling under Chapter 73 and 76 of First Schedule to CETA, 1985. It appears that the appellant had availed input service credit of service tax paid on lease rentals and operation and maintenance charges of wind mills located in Tirunelveli District; the electricity generated therefrom was transferred to the power grid of the Tamil Nadu Electricity Board (TNEB) from where equal quantity of electricity was drawn to the appellant's factory. 3. The Revenue appears to have noticed from the agreement dated 18.10.2010 between M/s.Hindujua Foundries Ltd. (the appellant herein, who is now named as Ashok Leyland Ltd.) and M/s.Ashok....

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....t of the service tax paid on lease rentals and operation and maintenance charges of windmills ?" 5. It is inter alia the case of the appellant that they had availed input service credit of the service tax paid on lease rentals and operation and maintenance charges of windmills; the electricity generated from such windmills was transferred to the power grid of TNEB from where equal quantity of electricity was drawn to the appellant's factory. It is further contended that the authority below was not justified in disallowing the input service credit on the ground that the input services were received outside the factory premises and that there is no dispute that the electricity generated by the windmills were, in fact, used in the manufactu....

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....lling of electricity and there is no mention of leasing of windmills in the said Agreement. Hence she would request for dismissing the appeals. 8. A perusal of the impugned order reveals that the Commissioner had observed from the above Agreement between the Appellant and M/s.ALWEL, the inputs which were used for operation and maintenance of windmills was used by M/s.ALWEL which is evident from the fact that the contract specified that the cost of operation and maintenance was to be borne by M/s.ALWEL. M/s.ALWEL was also responsible for the generation of electricity and they were in fact getting the windmills maintained and hence the appellant was in no way responsible for maintenance of windmills nor had they given any contract for doin....