2026-VIL-78-CESTAT-CHE-CE
  1. Home
  2. 2026-VIL-78-CESTAT-CHE-CE

CENTRAL EXCISE CESTAT Cases

Central Excise – Rule 2(l) of CENVAT Credit Rules, 2004 – Windmill related services – Eligibility of cenvat credit – Respondent is engaged in manufacture of cement and had availed CENVAT credit of service tax paid on maintenance and repair services of windmills located outside factory premises – Department issued show cause notice proposing recovery of credit along with interest and penalty – Commissioner dropped proceedings initiated against Respondent – Whether CENVAT credit of service tax paid on maintenance and repair services of windmills located outside factory premises is admissible under Rule 2(l) of the Rules – HELD – Main contention of department is that windmills are geographically located far away from factory premises and hence, services used for their maintenance cannot be considered as having nexus with manufacture of cement. Rule 2(l) of the Rules defines input service expansively and includes services used directly or indirectly in or in relation to manufacture. There is no statutory requirement under Rule 2(l) of the Rules that input service must be received within factory premises. Input service need not be used within factory premises so long as they are integrally connected with manufacturing activity. Denial of credit merely on ground of geographical distance would defeat the objective of CENVAT scheme. CENVAT credit of service tax paid on maintenance and repair of windmills located outside factory premises is admissible under Rule 2(l) of the Rules. Adjudicating authority was fully justified in dropping the proceedings. Impugned Order-in-Original is upheld – Appeal dismissed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

GSTR-9 & GSTR-9C of FY24-25
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?