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2013 (9) TMI 416 - CESTAT NEW DELHIAdmissibility of CENVAT credit - Definition of Capital Goods under Rule 2(a) - MS bars, MS plates and Sections, HR Plates etc. - The department was of the view that these items were neither covered by the definition of capital goods as given in Rule 2 (a) of Cenvat Credit Rules, 2004 nor were covered by the definition of inputs as given in Rule 2 (k) of Cenvat Credit Rules 2004 and hence the Cenvat credit in respect of these items is not admissible - Held that:- Prima facie the items used for repair and maintenance of the plant and machinery would be eligible for Cenvat credit - While the items used for repair and maintenance of the plant and machinery cannot be considered as raw material - The repair and maintenance of the plant and machinery was an activity integrally connected with the manufacture, as without regular repair and maintenance of the plant and machinery, smooth manufacturing process was not possible - In any case, scope of the term - "used in or in relation to manufacture of goods, whether directly or indirectly" was much wider than the scope of the term "used in the manufacture". Following Singh Alloys & Steel Ltd. vs. Assistant Collector [1993 (1) TMI 97 - HIGH COURT AT CALCUTTA ] and Grasim Industries Ltd. vs. Union of India 2011 (10) TMI 2 - SUPREME COURT OF INDIA - the "expression - in relation to" in the definition of 'input' had a wide connotation and the definition of input was not dependent in what ought to be used but what was commercially expedient to use and on this basis held that the ramming mass and dolomite mix used for preventing Corrosion of refractory lining of the furnace and sealing the crevices in the refractory walls so as to prevent leakage of molten metal are eligible for Modvat credit. Waiver of Pre-deposit - Prima facie the appellant had a strong prima facie case in their favour and as such the amount of Rs. 10,60,242/- already paid by them prior to adjudication was sufficient for hearing of the appeal - The requirement of pre-deposit of balance amount of Cenvat credit demand, interest and penalty was waived for hearing of the appeal and recovery was stayed till the disposal of the appeal - stay application was allowed.
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