TMI Blog2023 (4) TMI 1130X X X X Extracts X X X X X X X X Extracts X X X X ..... SSIONER OF C. EX., BHAVNAGAR VERSUS UNIFRAX INDIA LTD. [ 2009 (1) TMI 694 - CESTAT, AHMEDABAD] taking note of its earlier decision and thereby allowed CENVAT Credit on electrode assembly and needles. The Hon ble Calcutta High Court in the case of SINGH ALLOYS STEEL LTD. VERSUS ASSISTANT COLLECTOR OF CENTRAL EXCISE [ 1993 (1) TMI 97 - CALCUTTA HIGH COURT] had held that the definition of input was not dependent upon what ought to be used but what is in fact used. Relying on this decision the Tribunal in the case of INDUSTRIAL CHEMICALS MONOMERS LTD. VERSUS COLLR. OF C. EX., MADURAI [ 1995 (6) TMI 184 - CEGAT, NEW DELHI] had held that carbon paste used in the manufacture of calcium carbide either as a technical necessity or otherwis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... course of the manufacturing process. They submit that ECS is also contained in the finished goods, i.e. ferro alloys and therefore, it is rightly considered to be an input in terms of Rule 2 (k) of the Cenvat Credit Rules, 2004. 2. On the other hand, it is the Revenue s contention that the subject goods are in the nature of capital goods in terms of Rule 2 (a) of the Cenvat Credit Rules, 2004 and accordingly, cenvat credit on them ought to have been availed by the appellants as prescribed for capital goods, that is limiting it two shots of 50% in each of the two financial years. 3. As the appellant had taken cenvat credit of the said goods in one go (not spread over different financial year blocks), they were issued two show-cause not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rious authorities. The fact of use of the said goods and its ultimate consumption in the manufacture of finished goods is not disputed. The electrode carbon paste (ECP) owing to its capability to conduct electricity is essential for the manufacture of the ferro alloys and in the process gets consumed, even being a part of the finished goods. Therefore, it is certainly in the nature of a consumable. 6.1 The Tribunal in the case of Commissioner of Central Excise, Bhavnagar Vs. Unifrax India Ltd. reported in 2009 (245) ELT 474 (Tri.- Ahmd.) taking noted of its earlier decision and thereby allowed CENVAT Credit on electrode assembly and needles. It held as: 2 . In Monnet Ispat Ltd. v. C.C.E., Raipur reported in 2002 (148) E.L.T. 1202 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ein, there is no question of denying that electrode carbon paste is in the nature of a consumable as it gets consumed during the process of manufacture of ferro alloys. The electrode carbon paste, therefore, cannot be held to be capital goods in terms of Rule 2 (a) of the Cenvat Credit Rules, 2004. 10. The decision of the Tribunal in the case of Silical Metallurgic Limited Vs. Commissioner of Central Excise, Cochin reported in 2002 (149) ELT 711 (Tri.-Bang.), is on a totally different sphere of consideration and not applicable to the present case at hand. 11. I am of the opinion that electrode carbon paste used and consumed in the process of manufacture of ferro alloys is an input eligible for cenvat credit under Rule 2 (k) of the Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
