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2012 (8) TMI 853 - AT - Central ExciseCENVAT Credit - cenvat credit in respect of High Pressure gauge, Electric Machine Pump, RTD sensor, Thermo Couple, P.H. Electrode, Carbon filled bush, Branded Gland packing and Gland packing - Held that:- In respect of carbon filled bush and PH electrode, both are parts of machineries and get consumed when the machineries are used and therefore have been held as consumables. Just because they have to be frequently replaced, it cannot be said that they are in the nature of capital goods. Further, it also cannot be said that just because after some time they are required to be replaced, they cease to be part/accessory of the machine. Under these circumstances, the credit is to be allowed on carbon filled bush and PH electrode. As regards branded gland packing and gland packing, these items have been used to arrest leakages in pumps, heat exchangers and compressors - leakage is plugged the products used for plugging the leakage and ensured that the leakage does not occur in the machine/wall whatever it is. In reality they become part and parcel of the machine and so long as they are intact the leakage does not happen. In view of the above, the credit is rightly available on these items - Decided against Revenue.
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