TMI Blog2019 (7) TMI 255X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the subject inputs have not been used for construction of any building or structure/foundation for support of capital goods, but for repair and maintenance of coal handling plant and HEMM s. The usage of subject goods is very integral to the mining activity itself without which mining cannot be done - the use of goods in question in the repair and maintenance of coal handling plant and HEMM s is indispensible, in absence of which mining activity cannot be undertaken. Therefore, usage of subject goods bears a direct nexus with the mining activity and by no stretch of imagination it can be said that they have no relation with production of coal, which is the final product. The appellant is legally entitled to avail the benefit of credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed with equal penalty and interest. In appeal, the adjudication order has been upheld and the appeal was rejected. Hence, the present appeal before the Tribunal. 3. Sri Rajeev Kr. Agarwal, CA, appearing for the appellant submitted that the subject goods M S plates has been used for repair or maintenance of Heavy Earth Moving Machinery (HEMMs) used in the coal mines of the appellant which is not in dispute. He further submitted that the fact of usage of HEMMs in the mines for production of coal is also not in dispute. The Ld. Commissioner (Appeals) in the impugned OIA, Para 5.1, has observed that since the aforesaid goods have been used for repairs in the mines, the same cannot be said to have any relationship with the manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excluded from the definition of input as per CENVAT Credit Rules, 2004. He further submitted that in another case of SECL, Jamuna Kotma Area, the Ld. Commissioner (Appeals), Raipur has allowed the appeal of assessee vide Order-in-Appeal dated 15.02.2018 holding that the steel items i.e. MS Plate, TMT Rod, G.I.Pipe, Channel, HR/MS Plate, HR Sheet etc used in mines are eligible for credit. He also submitted that Appeal bearing no. E-52485/2018 was filed by the Department against the aforesaid Order-in-Appeal and the same has been rejected by the Tribunal on 29.05.2019. The case therefore stands decided in favour of the assessee. Apart from the above, he also referred to the CBEC Circular no. 943/04/2011-CX dated 29.04.2011 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstant case, the short issue that arises for consideration is whether the appellant is eligible to avail CENVAT credit of central excise duty paid on MS Plate used in repair and maintenance of capital goods. I find that there is no dispute that the subject goods MS plates has been used for repair or maintenance of HEMMs used in the coal mines of the appellant. I find that the definition of term input as defined in the CCR, 2004, includes all goods used in the factory of production unless specifically excluded therefrom. Neither of the exclusion clauses provided in the definition of term input under Rule 2(k) is attracted in the instant case as stated below: Clause (A) covers diesel and petrol, which is not relevant i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 011 in serial no. (3) has clarified as below:- Credit of all goods used in the factory is allowed except in so far as it is specifically denied. The expression no relationship whatsoever with the manufacture of a final product must be interpreted and applied strictly and not loosely. The expression does not include any goods used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not. Only credit of goods used in the factory but having absolutely no relationship with the manufacture of final product is not allowed. Goods such as furniture and stationary used in an office within the factory are goods used in the factory and are used in relati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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