TMI Blog2013 (5) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... the items in or in relation to the manufacture of final product whether directly or indirectly or whether contained in final product or not - denial of cenvat credit not sustainable.In favour of assessee. Paints - Held that:- As used for protecting the mill machinery from rust. The paints is covered by the definition of input - denial of cenvat credit not sustainable.In favour of assessee. Boiler chemicals - Held that:- As used for conditioning the heat water of the boiler which is necessary for smooth functioning of the boiler. Since with smooth functioning of the boiler, manufacturing is not feasible keeping in view the ratio of Singh Alloys & Steel Ltd. vs. Asstt. Collector of Central Excise (1993 (1) TMI 97 - HIGH COURT AT CALCUTT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de order-in-appeal dated 14.07.2008 by which the Joint Commissioner confirmed the cenvat credit demand alongwith interest thereon and imposed penalty of equal amount on the appellant. On appeal being filed to the Commissioner (Appeals), the same was partly allowed vide order-in-appeal dated 31.12.2008. The Commissioner (Appeals) upheld the cenvat credit demand of only Rs. 5,89,550/- in respect of welding electrodes, paint, sulphur, polythene sheet, G.C. sheets Twill bags and machinery parts and other items. She also reduced the penalty to Rs. 1 lakh. Against this order of Commissioner (Appeals) this appeal has been filed. 2. Ms. Rashi, Advocate, the ld. Counsel for the appellant, pleaded that so far as G.C. sheets and twill bags are con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded the impugned order and reiterated the finding of the Commissioner in it. 4. I have considered the submissions from both the sides and perused the record. 5. As regards G.C. Sheets and twill bags, the same have been used for repair work of the factory building and godown and hence would not be eligible for cenvat credit. Even the appellant are not contesting the denial of cenvat credit amounting to Rs. 71,376/- in respect of these items. In view of this, the Commissioner (Appeals) s order upholding the demand of cenvat credit demand of Rs. 71,376/- in respect of these items is uphold. 6. As regards welding electrodes the same admittedly have been used for repair and maintenance of the plant and the issue stands decided in favour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) cenvat credit in respect of boiler chemical has to be allowed. 9. As regards the eligibility of polythene sheets for cenvat credit, the use of this item is to protect the sugar from moisture. The sugar absorbs moisture from the air and moist sugar being not marketable, has to be reprocessed. To avoid reprocessing, the sugar bags are covered by polythene bags. Since the use of polythene sheets is after completion of manufacture of sugar, I am of the view that polythene sheets cannot be treated as input used in the manufacture of sugar and as such the same would not be eligible for cenvat credit. Therefore the appellant would not be eligible for cenvat credit in respect of polythene sheets. 10. As regards the machinery parts, the same a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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