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2014 (7) TMI 571 - AT - Central ExciseDenial of CENVAT Credit - Availment of credit on repair and maintenance of plant and machinery - Revenue contends that said activity cannot be held to be an activity associated with the manufacturing process and as such cannot be called as cenvatable input - Whether the appellant is entitled to avail the CENVAT credit of duty paid on welding electrodes and gases used for repair and maintenance of plant and machinery - Held that:- welding electrodes used for repairs and maintenance of plant and machinery would be eligible for Cenvat credit. Moreover, the definition of ‘input’ as given in Rule 2(k) of Cenvat Credit Rules, 2004 covers the goods used ‘in or in relation to manufacture’ of final products, whether directly or indirectly which is a much wider than the expression ‘used in manufacture’. While repair or maintenance by itself is not a process of manufacture, this activity certainly has nexus with manufacture of final product and would be covered by the expression – ‘used in or in relation to manufacture of final product’ as no manufacturing activity is possible with malfunctioning machinery. In view of this, impugned order is not sustainable - Following decision of Sree Rayalaseema Hi-Strength Hypo Ltd. v. CCE & C, Tirupati [2012 (11) TMI 255 - ANDHRA PRADESH HIGH COURT] - decided in favour of assessee.
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