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2018 (8) TMI 1974 - AT - Central ExciseCENVAT Credit - capital goods - Welding Electrodes - Tool Bit/Tool Bit Blanks - It is the case of the Revenue that Welding Electrodes and Tool Bit/ Tool Bit Blanks are neither specified as capital goods nor are they same parts/accessories/components etc. of any of the capital goods installed in the factory - Period of dispute is from April 2014 to December 2014 for an amount of ₹ 29,799.32 and for the period from January 2015 to December 2015 for an amount of ₹ 1,02,140/- totaling to ₹ 1,31,939.32. HELD THAT:- The Welding Electrodes are used in making parts and accessories of the rolling mills for immediate replacement of sudden broken parts like impellers, conveyors part etc. to keep the mill in running condition and also for the purpose of maintenance. Similarly, Tool Bit/Tool Bit Blanks are used for machining, grooving etc. of rolls, small repairing of the various channels for the movement of molten materials to keep the mill running. It is not in dispute that the use of impugned items i.e. Welding Electrodes and Tool Bit/ Tool Bit Blanks has been used in repair and maintenance of the capital goods or making of certain parts, components and spares of the capital goods - Hon’ble High Court of Rajasthan in the case of UNION OF INDIA VERSUS HINDUSTAN ZINC LTD. [2006 (5) TMI 44 - HIGH COURT RAJASTHAN] held that MS/SS plates used in workshop meant for repair and maintenance of machinery, which are used for manufacture of final product and such goods which are necessary for running of plant and upkeeping of machinery directly involved in the manufacturing of products, held to be eligible to avail Modvat Credit. Demand set aside - appeal allowed - decided in favor of appellant.
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