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2015 (10) TMI 1370 - AT - Central ExciseEligibility of welding electrodes used for repair and maintenance of the plant and machinery for Cenvat credit - Held that:- welding electrodes used for repair and maintenance of plant and machinery are eligible for Cenvat credit - denial of Cenvat credit in respect of welding electrodes used for repair and maintenance of plant and machinery and Cenvat credit demand on this basis is not sustainable. - Decision in the case of Union of India vs. Hindustan Zinc Ltd. reported in [2006 (5) TMI 44 - HIGH COURT RAJASTHAN] appeal against it has been dismissed by the Apex court vide judgment reported in [2006 (11) TMI 551 - SUPREME COURT OF INDIA]. As regards the capital goods Cenvat credit in respect of CI Slag pot, this issue also stands decided in favour of the appellant by the judgment of the Tribunal in the case of CCE, Delhi - III vs. Jindal Strips Ltd. reported in [2000 (2) TMI 158 - CEGAT, NEW DELHI]. In view of this, we hold that the denial of Cenvat credit in respect of this demand and Cenvat credit on this basis is not sustainable. Various depots had transferred the end cuttings of pipes under invoices wherein the proportionate duty paid on the pipes at the time of clearance from their respective factories had been mentioned. The Department seeks to re-calculate this duty on the basis of the scrap value of the end cuttings, as mentioned in the depot invoices and restrict the Cenvat credit to that amount. In our view this stand of the Department is not correct in view of the Apex court's judgment in the case of Commissioner of Central Excise & Customs vs. MDS Switchgear Ltd. reported in [2008 (8) TMI 37 - SUPREME COURT], wherein it has been held that the receiver manufacturer who had received the duty paid inputs from a supplier - manufacturer is entitled to Cenvat credit of the duty paid by the supplier manufacturer and the Central Excise Authorities having jurisdiction for the recipient manufacturer cannot review the assessment of the duty at the end of the supplier manufacturer. - Decided in favour of assessee.
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