2025-VIL-1189-GUJ-CE
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CENTRAL EXCISE High Court Cases

Central Excise - Cenvat Credit on installation, commissioning and civil works as well as maintenance of windmill located outside the factory - Appellant installed a windmill for generating electricity using wind energy. The appellant availed services of installation, commissioning and maintenance of the windmill and paid service tax on these services. The appellant claimed Cenvat credit on the service tax paid, which was denied by the authorities on the ground that the windmill was located away from the factory premises and the electricity generated was not excisable - Whether the Cenvat credit of service tax paid on services like installation, commissioning and civil works as well as maintenance for the windmill was admissible to the appellant - HELD - The definition of "input service" under the Cenvat Credit Rules, 2004 is very wide and covers any service used by the manufacturer, whether directly or indirectly, in relation to the manufacture of final products. The fact that the windmill was located away from the factory premises does not disentitle the appellant from claiming the Cenvat credit, as the Rules do not prescribe that the input service must be received at the factory premises. The electricity generated by the windmill was utilized by the appellant in its manufacturing unit through the state electricity grid, and thus, there was a direct nexus between the services availed for the windmill and the appellant's manufacturing activities. Relying on the decisions in Excel Crop Care Ltd., Endurance Technology Pvt. Ltd. and Ashok Leyland Ltd., the appellant is entitled to the Cenvat credit of the service tax paid on the installation, commissioning and maintenance of the windmill - The appeal is allowed
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