B.S.V. Murthy, Member (T)

1. The appellants are engaged in the manufacture of clinker. The issue in this appeal is the admissibility of Cenvat credit taken on service tax paid on man power supply to power plant and operation and maintenance of power plant. The power generated from the power plant is supplied" to residential colony, clinker unit, jetty and cement plant. The Commissioner (Appeals) has taken a view that input services are provided to the power plant which result in the manufacture of electricity which is not liable to excise duty. According to him, the provisions of Rule 6(5) of Cenvat Credit Rules, 2004, which provides that credit is admissible only when service is not used exclusively in or in relation to exempted goods or providing exempted services. The admissibility of Cenvat credit on inputs/capital goods used for power plant set up by various manufacturer for generating electricity to provide excisable goods is well settled and allowed. Accordingly, the benefit of Cenvat credit on services of supply of man power and operation and maintenance of power plant also are admissible.

The appeal is allowed.

(Pronounced in the open Court)