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2020 (2) TMI 749 - AT - Central ExciseCENVAT Credit - inputs/capital goods - Welding Electrodes - Welding filler wire - Materials used for railway line - M.S. Gratings/G.I Coated Gratings - Construction chemicals - demand alongwith interest and penalty. Welding electrode - welding filler wire - HELD THAT:- All the items were used exclusively in relation to manufacture of final product in the appellants manufacturing unit. The welding electrode and welding filler wire were used for repair and maintenance of plant and machinery which is necessity to run the production of excisable goods. Therefore, the same is used even if not directly but indirectly indeed in relation to manufacture of final product - Credit allowed. Materials used for railway line - HELD THAT:- In the present case railway line installed partly within the factory and outside the factory is exclusively used for handing of material which is used in the manufacture of final product - Hon’ble Supreme Court in the case of VIKRAM CEMENT VERSUS CCE, INDORE [2006 (2) TMI 1 - SUPREME COURT]), are of the view that credit on material used for laying rail line is admissible - credit allowed. M.S. Gratings/G.I Coated Gratings - HELD THAT:- The same is used as accessory for supporting and holding for approaching how to plant/ processing units of refinery. The platforms for approaching or reaching out the plant is part and parcel of the entire plant and machinery particularly in large scale manufacturing unit without which the operation of plant is not possible. Therefore, the M.S. Gratings used as accessory in such structure is used in relation to the manufacture of final product - Credit allowed. Construction chemical - HELD THAT:- The construction chemical was used for the maintenance of cooling towers, pumps, compressors and machine base plates etc. is used for maintenance and operation of the plant, therefore, the same can be classified as accessory for plant and machinery. Hence, being essential chemicals for running plant is admissible inputs and eligible for Cenvat Credit - credit allowed. The appellants are entitled for Cenvat Credit in respect of the inputs/ capital goods in question - credit allowed - appeal allowed - decided in favor of appellant.
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