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2014 (2) TMI 548 - CESTAT BANGALOREDenial of CENVAT Credit - Whether the appellant is eligible for CENVAT credit of duty paid on MS plates, Angles, Sheets, and Channels etc - Original authority confirmed the demand and imposed penalty - Commissioner (Appeals) has allowed the benefit of CENVAT credit following decision in CCE, Coimbatore Vs. M/s. Jawahar Mills Ltd. [2001 (7) TMI 118 - SUPREME COURT OF INDIA] - Held that:- welding electrodes used for repair and maintenance are not eligible for CENVAT credit as the activity of repair and maintenance is distinct from manufacture, in my view when three High Courts as mentioned above held that the items used for repair and maintenance of plant and machinery are eligible for CENVAT credit it is this view which has to be adopted. Moreover, for permitting CENVAT credit what is relevant is as to whether the use of the item has nexus with manufacture and whether without that item manufacture is commercially possible. Since repair and maintenance is an activity which is essential for smooth manufacturing operations and without regular repair and maintenance, manufacturing activity is not commercially feasible, the inputs used for repair and maintenance of the plant would be eligible for CENVAT credit. I, therefore, hold that the impugned order disallowing the CENVAT credit is not sustainable - Following decision of Sree Rayalaseema Hi-Strength Hypo Ltd. v. CC & CE, Tirupati [2012 (11) TMI 255 - ANDHRA PRADESH HIGH COURT] - Decided against Revenue.
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