2026-VIL-1227-GUJ-CE
  1. Home
  2. 2026-VIL-1227-GUJ-CE

CENTRAL EXCISE High Court Cases

Central Excise - Eligibility to CENVAT Credit on input services of maintenance and repair of wind farm situated away from the factory under Rule 2(l) of the CENVAT Credit Rules, 2004 - Appellant established a wind farm about 225 kilometres from its factory for captive generation, and the electricity generated was supplied to the electricity board, which supplied electricity to the factory after adjustment and deduction of wheeling charges - Appellant availed CENVAT credit of service tax paid on maintenance and repair services received at the wind farm - Whether the Tribunal was justified in holding that the Appellant is not entitled to avail and utilize CENVAT credit on service tax paid on manufacture and repair of the wind farm/mills - HELD - The definition of input service in Rule 2(l) covers any service used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products, and has to be widely construed. The words "within the factory of production" are absent in Rule 2(l), and the only stipulation is that the input service should be received by the manufacturer of the final product. There is no provision in the Rules which requires that input services received by the manufacturer must be received at the factory premises - The Appellant utilised the electricity supplied by the electricity board against the electricity generated by the wind mills, and the maintenance and repair services of the wind mills were therefore used in relation to the manufacturing activity and fall within input service. The Tribunal was not justified in denying the credit - The question of law is answered in favour of the Appellant and against the Respondent and the appeal is allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

VIL Video

GST Adjudication & Appeals Reform
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

Security-Code
New Code?

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.

Security-Code
New Code?

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?