TMI Blog2013 (3) TMI 427X X X X Extracts X X X X X X X X Extracts X X X X ..... e pipes, it has to be treated as an item used for repair and maintenance and hence the same would be eligible for Cenvat credit. See Oswal Overseas Ltd. v. CCE, Meerut-II (2010 (1) TMI 522 - CESTAT, NEW DELHI) wherein held that asbestos jointing sheets used for plugging the holes in the pipelines installed in the factory and thereby allowing smooth 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 favour of assessee. Eligibility of rough castings, unmachined steel castings, HRCS castings etc. - Held that:- For Cenvat credit 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 - In favour of assessee. Eligibility of M.S. Angles, Channels, Joists, Iron and Steel structures, supporting frame etc. used for erecting supporting structures - Held that:- Thus calim settled against the appellant by the judgment of Vandana ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner, 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 these appeals is from April 2000 to April 2004. There are six issues involved in these appeals - (i) whether the M.S. plates, beams, angles, channels, sheets etc. used for repair and replacement of damaged parts of cement plant and machinery are eligible for Cenvat credit either as capital goods or as inputs; (ii) whether iron and steel structures and tower material falling under Chapter Heading 73.08 are eligible for Cenvat credit; (iii) whether unmachined steel castings and rough HRCS castings used for replacement of damaged parts of the cement plant and machinery are eligible for Cenvat credit; (iv) whether rope asbestos/sheet steam jointing and similar items used for plugging the leakages are eligible for Cenvat credit; (v) whether nitrogen gas falling under Chapter 28 and PVC sheets, plastic sheets of Chapter 39 and fibre glass sheets of Chapter 70 are eligible for Cenvat credit; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pur 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 would be eligible for Cenvat credit, that aluminium conductors are used for power supply and hence have to be treated as part of the cement plant machinery and the same would be eligible for Cenvat credit and in this regard they rely upon the judgment of the Hon ble Himachal Pradesh High Court in the case of CCE v. A.C.C. Ltd. reported in 2009 (236) E.L.T. 38 (H.P.), that nitrogen gas is used in connection with repair and maintenance and, hence, the same would also be eligible for Cenvat credit, that PVC sheets plastic sheets and fibre glass sheets are used as lining material for and that in view of the above submissions, the impugned order is not correct. 4. Shri I. Baig, the learned Departmental Representative, defending the impugned order, pleaded that in all these cases the appellant have made only a general claim regarding use of the M.S. Angles, Channels, Beams etc. for repair and maintenance without spe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nion 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 Rajasthan High Court has been dismissed by Hon ble Supreme Court vide judgment reported in 2007 (214) E.L.T. A115 (S.C.). Besides this, we find that Hon ble Chhattisgarh High Court in the case of Ambuja Cements Eastern Ltd. v. CCE, Raipur (supra) has held that welding electrodes used for repair and maintenance of the plant and machinery are entitled for Cenvat credit. In this judgment, Hon ble High Court relied upon the judgment of Hon ble Rajasthan High Court in the case of Union of India v. Hindustan Zinc Ltd. (supra) and in paras 21 and 22 of the judgment, Hon ble High Court with regard to the Revenue s plea that the Tribunal in the case of Steel Authority of India Ltd. v. CCE reported in 2008 (222) E.L.T. 233 (Trib.) had held that welding electrodes used for repair and maintenance of plant and machinery are not eligible for Cenvat credit and the SLP filed by M/s. SAIL against the Tribunal s order has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... envat credit in respect of these items is not sustainable. 5.4 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 of the Tribunal in the case of Vandana Global Ltd. v. CCE, Raipur (supra), wherein this Tribunal held that foundation and supporting structures embedded to earth are capital assets and the same do not qualify as capital goods as defined in Rule 2(a) of Cenvat Credit Rules and hence the steel items used for erection of the supporting structures are not eligible for Cenvat credit. In view of this, the impugned order denying Cenvat credit in respect of these items is upheld. 5.5 As regards aluminium conductors, the same are classifiable under sub-heading 7614.90 of the tariff which is not the heading specified in the definition of capital goods. It is also not the case of the appellant that the aluminium conductors are components or accessories of any item of capital goods. We also find that the Tribunal in the case of Sarita Steel Industries Limited v. CC ..... X X X X Extracts X X X X X X X X Extracts X X X X
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