TMI Blog2010 (11) TMI 927X X X X Extracts X X X X X X X X Extracts X X X X ..... r dated 31st December, 2007 had disallowed the claim of the appellants for Cenvat (Modvat) Credit amounting to ₹ 19,298/- on the welding electrodes and had ordered recovery of the same along with interest. 2. The appellants are engaged in the manufacture of sugar and molasses classifiable under Chapter Heading 17.01 and 17.03 respectively of the Central Excise Tariff Act, 1985. They are also availing Cenvat credit facility in relation to the duty paid on the inputs and capital goods. During the scrutiny of modvat documents for the month of October, 1999, it was revealed that the respondents had availed the inadmissible credit amounting to ₹ 19,297.53 inputs on the duty paid on welding electrodes even though the welding electr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tter of Vikram Cement v. CCE, Indore, reported in 2009 (242) E.L.T. 545, submitted that, the law in this regard is well settled and the appellants are not entitled to claim the credit in relation to the duty paid on the welding electrodes. 4. The impugned order clearly holds that the issue of admissibility of Cenvat Credit on welding electrodes as capital goods had been squarely decided by the Larger Bench of the Tribunal in the matter of Triveni Engg Indus. Ltd. v. CCE, Meerut, reported in 2005 (186) E.L.T. 158 (T.-LB.), wherein it was held that, the welding electrodes which are used for repairs and maintenance purpose are not covered under the definition of the capital goods and hence not eligible for the benefit of the cenvat credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same, it was held that the decision of the Larger Bench of the Tribunal in the matter of Jaypee Rewa Plant v. CCE, reported in 2003 (159) E.L.T. 553 (T.-LB.), which was followed in SAIL s case (supra) was binding upon the Tribunal. 7. The observations of the Rajasthan High Court and that of Chhattisgarh High Court in relation to the decision in the matter of Jaypee Rewa Plant (supra) as well as in the matter of SAIL (supra) do not appear to be in consonance with the decision of the Apex Court. Once the order of the Tribunal merges in the order of the Supreme Court, it ultimately assumes the character of binding precedent and considering the same, therefore, we are bound by the decision of the Larger Bench in Jaypee Rewa Plant s case ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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