TMI Blog2011 (7) TMI 993X X X X Extracts X X X X X X X X Extracts X X X X ..... not sustainable Whether nitrogen gas falling under Chapter 28 and PVC sheets plastic sheets of Chapter 39 are eligible for Cenvat credit – Held that:- appellant have not specified as to how the same are used in or in relation to the manufacture of the finished goods. Commissioner (Appeals) finding denying the Cenvat credit upheld - E/340-342, 356-358, 360-361, 369-376, 652, 718-720/2006 - 521-540/2011-EX(PB) - Dated:- 4-7-2011 - Justice R.M.S. Khandeparkar, Shri Rakesh Kumar, JJ. REPRESENTED BY : Shri G.K. Sarkar and Saurav Yadav, Advocates, for the Appellant. Shri V. Choudhary, DR, for the Respondent. [Order per : Rakesh Kumar, Member (T)]. All these appeals arise out of common order-in-appeal dated 9-11-2005 passed by Commissioner, Central Excise (Appeals), Jaipur-II. The appellant are manufacturers of cement chargeable to Central Excise Duty. They avail Cenvat credit of Central Excise duty paid on inputs and capital goods used in or in relation to the manufacture of their final product. The period of dispute in respect of appeal No. E/372/06 filed by M/s. J.K. Cement Works is March 1997 and in all other appeals, the period of dispute is from January 2001 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f plant and machinery would be eligible for Cenvat credit, that the Cenvat credit in respect of asbestos jointing sheets used for plugging the holes in the pipeline cannot be denied, as in view of their use, the same have to be treated as component and integral part of the machinery and in this regard they rely upon the Tribunal s judgment in the case of Oswal Overseas Ltd. v. C.C.E., Meerut-II reported in 2010 (254) E.L.T. 338 (Tri.-Del.), that the steel castings have been used as replacement for various components and hence being component of the cement plant and machinery, would be covered by the definition of capital goods , that even the M.S. Angles, Channels, Joists, Beams etc. used for fabrication of supporting structures and tower material falling under Heading 73.08 would be eligible for Cenvat credit and in this regard they rely upon the judgment of Hon ble Supreme Court in the case of C.C.E., Jaipur v. Rajasthan Spinning Weaving Mills Ltd. reported in 2010 (255) E.L.T. 481 (S.C.), wherein Hon ble Supreme Court has held that steel plates and M.S. channels used in fabrication of chimney for diesel generating sets are covered by the definition of capital goods and woul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... firmity in the impugned order. He emphasised that while the issue regarding eligibility of M.S. Angles, Channels, Beams, Joists etc. used for fabrication of supporting structures stands decided in Department s favour by the judgment of Larger Bench of the Tribunal in the case of Vandana Global Ltd. v. C.C.E., Raipur (supra), the items used for repair and maintenance also cannot be said to be either inputs or capital goods as repair and maintenance is not part of the manufacture. 3. We have carefully considered the submissions from both the sides and perused the records. 3.1 The first point of dispute in these appeals is as to whether M.S. Angles, Channels, Plates etc. used for repair and maintenance of plant and machinery are eligible for Cenvat credit or not. On this issue, we find that Hon ble Rajasthan High Court in the case of Union of India v. Hindustan Zinc Ltd. (supra) has held that M.S./S.S. Plates used in the workshop for repair and maintenance of the machinery, which is used for the manufacture of final product are eligible for Cenvat credit. The Government s SLP against this judgment of Hon ble Rajas-than High Court has been dismissed by Hon ble Supreme Court vide ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same would be eligible for Cenvat credit. We find that this Tribunal in the case of Oswal Overseas Ltd. v. C.C.E., Meerut-II (supra) had also held that asbestos jointing sheets used for welding various pipelines installed in the factory and allowing flow of liquid from one equipment to another during the process of manufacture are components/integral part of the machinery and hence are eligible for Cenvat credit as capital goods. In view of this, the Commissioner (Appeals) order denying Cenvat credit for this item is also not sustainable. 3.3 As regards the rough castings, unmachined steel castings, HRCS castings etc., we find that these items are used as a replacement for parts of the machinery and hence the same have to be treated as components and accessories of the cement, plants and machinery. Therefore, the Commissioner (Appeals) s order denying Cenvat credit in respect of these items is not sustainable. 3.4 As regards the M.S. Angles, Channels, Joists, Iron and Steel structures, supporting frame etc. which are used for erecting supporting structures, the question of their eligibility for Cenvat credit stand settled against the appellant by the judgment of Larger Bench ..... X X X X Extracts X X X X X X X X Extracts X X X X
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