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2013 (11) TMI 1036 - AT - Central ExciseEligibility for cenvat credit - Welding electrodes and other goods used for repair and maintenance of plant and machinery – Whether the goods used can be treated as inputs and having nexus with the manufacture – Held that:- Following Hindustan Zinc Ltd. vs. UOI [2008 (7) TMI 55 - HIGH COURT RAJASTHAN ] and Ambuja Cements Eastern Ltd. vs. CCE, Raipur [2010 (4) TMI 429 - CHHAITISGARH HIGH COURT ] – and J.K. Cotton Spinning and Weaving Mills Co. Ltd. vs. Sales Tax Officer [1964 (10) TMI 2 - SUPREME COURT OF INDIA] – while interpreting the scope of the expression used in the manufacture in Section 8 (3) (b) of the Central Sales Tax Act, 1956 has held that if a process or activity is so integrally related to the ultimate manufacture of good so that without that process or activity, manufacture may, even if theoretically possible, be commercially inexpedient, goods intended for use in that process or activity would qualify for special treatment i.e. for being treated as used in manufacture of goods. The scope of the expression used in or in relation to the manufacture of final product whether directly or indirectly in the definition of ‘input’ in the Cenvat Credit Rules, 2004 would be much more wider and any goods used in any process or an activity having nexus with manufacture of final product would be covered by the definition of ‘input’ and the goods used in any activity without which the manufacturing operation, though theoretically possible but commercially inexpedient, have to be treated as having nexus with the manufacture and would be eligible for Cenvat credit as input - Repair and maintenance is an activity having nexus with manufacture - the inputs used for repair and maintenance of the plant and machinery would be eligible for Cenvat credit – Decided in favour of Assessee.
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