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2013 (5) TMI 265 - AT - Central ExciseEligibility for cenvat credit - whether the welding electrodes and H.R. Plates used for repair and maintenance of the plant and machinery are eligible for cenvat credit? - Held that:- As decided in Ambuja Cements (2010 (4) TMI 429 - CHHAITISGARH HIGH COURT), Hindustan Zinc Ltd. (2008 (7) TMI 55 - HIGH COURT RAJASTHAN) and Alfred Herbert (India) Ltd. (2010 (4) TMI 424 - KARNATAKA HIGH COURT) welding electrodes other items used for repair and maintenance of plant and machinery would be eligible for cenvat credit. Moreover for permitting cenvat credit in respect of an item what is relevant is as to whether the use of that item has nexus with manufacture and not whether use of that item is part of the manufacture. Nexus has to be determined on the basis as to whether without use of that item manufacture is commercially feasible. Since repair & maintenance of plant and machinery is necessary for smooth manufacturing operation, the cenvat credit be eligible for credit would be admissible in respect of inputs used in repair and maintenance of plant and machinery. In favour of assessee
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