TMI Blog2014 (10) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... and maintenance of the plant and machinery and for this purpose, the steel has been used for fabrication of the components of the machinery for replacing the worn out parts. Conclusion that the steel items have not used for repair and maintenance of plant and machinery but have been used for supporting structures or foundation of the machinery, is not correct. Since, these items have been used for repair and maintenance, the same would be eligible for Cenvat credit, in view of judgment of Hon’ble Chhattisgarh High Court in the case of Ambuja Cements Eastern Ltd. - [2010 (4) TMI 429 - CHHAITISGARH HIGH COURT] and judgment of Hon’ble Rajasthan High Court in the case of Union of India vs. Hindustan Zinc Ltd. reported in [2006 (5) TMI 44 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redit in respect of the above items and confirmed the Cenvat credit demand. On appeal being filed to Commissioner (Appeals) against this order, the Commissioner (Appeals) vide order-in-appeal dated 18/10/12 upheld the Cenvat credit demand except for setting aside of the penalty of ₹ 50,000/-. Against this order of the Commissioner (Appeals), this appeal has been filed. 2. Heard both the sides. 3. Ms. Mehak Gupta, Advocate, the learned Counsel for the appellant, pleaded that while PP bags have been used for storage of raw sugar during its transportation from port to the factory and during storage in the factory, the Welding Electrodes were used for repair and maintenance of the plant and machinery. As regards the steel items - MS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ructures for the machinery, that in this case though the appellant plead that they had used the steel items for repair and maintenance of plant and machinery or for fabrication of the components of the machinery for replacing, old and worn out parts since no evidence in support of this claim has been produced and it has to be presumed that the steel items have been used as supporting structures of the machinery or as foundation of the machinery and, hence, the same would not be eligible for Cenvat credit, that as regards PP bags, the same are not eligible for Cenvat credit in view of judgment of the Tribunal in the case of J.K. Sugar Ltd. vs. CCE, Meerut II reported in 2010 (255) E.L.T. 554 (Tri. - Del.), wherein it was held that the PP w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s supporting structures for machinery or for foundation of the machinery. Though the Department alleges that the use of the steel items was for this purpose only, that is, either for foundation of machinery or for supporting structures, there is no evidence in this regard and this is only a presumption, while the appellant in support of their contention regarding use of steel items have produced a chartered engineers certificate. In view of this, the conclusion that the steel items have not used for repair and maintenance of plant and machinery but have been used for supporting structures or foundation of the machinery, is not correct. Since, these items have been used for repair and maintenance, the same would be eligible for Cenvat credi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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