TMI Blog2009 (3) TMI 807X X X X Extracts X X X X X X X X Extracts X X X X ..... fineries Ltd. v. CCE, Bangalore [2005 (11) TMI 161 - CESTAT, BANGALORE] wherein this Tribunal had examined the issue in depth and came to the conclusion that all the impugned items are entitled for Cenvat credit. Appeal dismissed - decided against Revenue. - E/260/2008 - 144/2009 - Dated:- 2-3-2009 - S/Shri T.K. Jayaraman, M.V. Ravindran, JJ. REPRESENTED BY : Shri V.P.C. Rao, SDR, for the Appellant. Shri V.J. Sankaram, Advocate, for the Respondent. [Order per : T.K. Jayaraman, Member (T)]. - This appeal has been filed against the Order-in-Appeal No. 2/2007 dated 10-1-2008 passed by the Commissioner of Central Excise and Customs (Appeals), Guntur. 2. We heard both sides. 3. The respondents are manufacturers of Cem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... light of definitions of capital goods and inputs as given in Rule 2 of Cenvat Credit Rules, 2004. According to Rule 2(k) of the said Rules, the term inputs takes into its ambit all goods used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not. Since the impugned goods are used for repair/maintenance of the capital goods, these cannot be said to be used in or in relation to the manufacture of final products either directly or indirectly. Hence, the subject goods cannot be termed as inputs. According to Rule 2(a) of the said Rules, the term capital goods covers, among others, all goods falling under Chapters 82, 84, 85, 90 etc., but it does not includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r and Vijay Chemicals. The Tribunal on consideration of the aforesaid provision and various decisions including some of this Court one of it being by a Bench of which one of us (Bharucha, J) was a member of [Indian Farmers Fertilizers Cooperative Ltd. v. Collector of Central Excise, Ahmedabad - 1996 (86) E.L.T. 177 (S.C.) = (1996) 5 SC.C. 488] came to the conclusion that the items involved qualify as Capital goods under Rule 57Q would thus be eligible for Modvat credit. The Tribunal did not accept the contention of the Revenue that the items were not Capital goods within the meaning of terms as defined in Explanation (1). 4. The aforesaid definition of Capital goods is very wide. Capital goods can be machines, machinery, plant, eq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tric wires and cables in the case of Kothari Sugar and Vijay Chemicals. The Apex Court held that these were covered by the definition of capital goods as given in explanation (1) to Rule 57Q. It is pertinent to note that the issue of Cenvat credit on Oxygen, Nitrogen and Welding Electrodes was not considered by the Apex Court in this case law. Thus, keeping the guidelines laid down by the Apex Court in the Jawahar Mills Ltd. case law, the present issue merits to be examined in the context of the Cenvat Credit Rules. Under Cenvat Credit Rules, 2004, though use of the capital goods in the factory is sufficient to be eligible to the Cenvat credit, it applies only to the specified goods, viz : (i) All goods falling under Chapter 82, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are not specified capital goods. In view of this position, credit of Cenvat paid on Oxygen, Nitrogen and Welding Electrodes is not available as capital goods. 4.1 The learned DR relied on the following decisions and stated that in the light of these decisions, the Cenvat credit is not allowable. (i) M/s. Ramala Sahkari Chinni Mills Ltd. v. CCE, Meerut-I - 2007 (211) E.L.T. 412 (Tri-Del.) (ii) M/s. Hindustan Zinc Ltd. v. CCE, Jaipur - 2007 (219) E.L.T. 865 (T) = 2007-TIOL-520-CESTAT (iii) M/s. Jaypee Rewa Plant v. CCE, Raipur - 2003 (159) E.L.T. 553 (Tri.-L.B.) 5. We have considered the submissions carefully. The issue of Cenvat credit on Welding Electrodes, Oxygen and Acetylene gas used for maintenance was the subject m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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