TMI Blog2009 (9) TMI 778X X X X Extracts X X X X X X X X Extracts X X X X ..... -original dated 29-6-06, while allowing the capital goods Cenvat credit in respect of Bagasse Carrier chain; disallowed the capital goods Cenvat credit in respect of welding electrodes used for repair and maintenance of the machinery and on this basis confirmed Cenvat credit demand of Rs. 73,856/- and imposed penalty of Rs. 10,000/- under Cenvat Credit Rules, 2004. On appeal by the respondent agai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding electrodes, which was not admissible, some penalty should have been imposed on the respondent and that, therefore, the impugned order setting aside the penalty is not correct. He pleaded that there is no provisions in Rule 15 that in the cases where there is some dispute the penalty can be waived. 2.2 Shri Shekhar Vyas, Advocate, ld. Counsel for the respondent pleaded that the only issue in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... repair and maintenance of plant and machinery are covered by the definition of capital goods. He also cited the judgment of Hon ble Rajasthan High Court in the case of UOI v. Hindustan Zinc Ltd. reported in 2007 (214) E.L.T. 510 (Raj.) wherein it was held that MS/SS plates used in workshop meant for repair and maintenance of machinery, which are used for manufacture of final product are the goods, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal in the case of Vikram Cement v. CCE, Indore [2009 (242) E.L.T. 545 (Tri. - Del.)] has held that welding electrodes are not eligible for Cenvat credit as inputs, in that judgment the eligibility of welding electrodes for Cenvat credit as capital goods has not been considered and thus on the question of eligibility of welding electrodes for Cenvat credit as capital goods, the only judgment wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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