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2013 (8) TMI 98 - AT - Central ExciseWelding electrodes used for repair and maintenance of plant and machinery, are eligible for Cenvat Credit or not – Held that:- Relying upon the judgment of Hon’ble Chhattisgarh High Court in case of Ambuja Cement Eastern Ltd. [2010 (4) TMI 429 - CHHAITISGARH HIGH COURT ], it has been held that welding electrodes used for repair and maintenance of plant and machinery eligible for Cenvat Credit - Hon’ble Karnataka High Court in case of Alfred Herbert (India) Ltd. reported in [2010 (4) TMI 424 - KARNATAKA HIGH COURT ] has also held that the goods used for repair & maintenance of plant and machinery are eligible for Cenvat Credit – Also, Apex Court in case of Grasim Industries Ltd. reported in [2011 (10) TMI 2 - SUPREME COURT OF INDIA] has held that repair & maintenance of machinery is not manufacture and therefore steal scrap, arising in course of the said activity is not excisable, this judgment does not help the Department, as for determining the eligibility for Cenvat Credit of an item used in an activity, what is relevant is as to whether without that activity in which the item, in question, is used, manufacturing operation are commercially feasible, and it is not relevant as to whether that activity by itself amounts manufacturer. In the case of Sree Rayalaseema Hi-Strength Hypo Ltd. reported in [2012 (11) TMI 255 - ANDHRA PRADESH HIGH COURT] decided by Hon’ble Andhra Pradesh High Court, the point as to whether without regular repair & maintenance of the plant and machinery by using welding electrodes, manufacturing operations, were commercially feasible, had not been considered – Decided in favor of Assessee.
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