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2023 (12) TMI 4 - CESTAT CHENNAIRecovery of credit taken wrongly and utilized alongwith interest and penalty - capital goods or not - welding electrodes falling under Chapter Sub Heading 831100 - period from October 2006 to February 2007 - HELD THAT:- The use of welding electrodes are integrally connected to capital goods and thereby with the process of manufacture. They are used for the maintenance of capital goods installed in the appellant’s plant. Without the use of welding electrodes, during maintenance of capital goods whenever necessary, the machine may not function and manufacture would be impossible or commercially inexpedient. Welding electrodes which are hence used in relation to the manufacture of final products come under the definition of ‘inputs’ as per Rule 2 of CENVAT Credit Rules, 2004. Therefore, the eligibility of the said inputs for CENVAT credit cannot be denied. Reliance can be placed in the case of M/S. TAMILNADU NEWSPRINTS & PAPER LTD. VERSUS THE COMMISSIONER OF CENTRAL EXCISE [2017 (6) TMI 574 - MADRAS HIGH COURT] where it was held that the said issue is covered by the judgment of the Division Bench of this Court in the matter of THE NATIONAL CO-OPERATIVE SUGAR MILLS LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE [2016 (7) TMI 1073 - MADRAS HIGH COURT], where it was held that Judicial pronouncements makes it abundantly clear that welding electrodes used for repair and maintenance of machineries, in relation to manufacture of the final product, namely sugar, is eligible for CENVAT credit. The impugned order dated 04/02/2015 passed by the Commissioner of Central Excise (Appeals), Coimbatore is set aside - Appeal allowed.
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