TMI Blog2013 (5) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... STHAN) the inputs used for repair and maintenance of machinery would be eligible for cenvat credit. Since repair and maintenance is an activity which is essential for smooth manufacturing operations and without regular repair and maintenance, manufacturing activity is not commercially feasible, the inputs used for repair and maintenance of the plant would be eligible for cenvat credit. The appeal is allowed. - 2330 of 2010-SM - 55895/2013-SM(BR)(PB) - Dated:- 25-3-2013 - Mr. Rakesh Kumar, J. For the Appellant: Ms. Rashi Sureka, Advocate For the Respondent: Ms. Shweta Bector, DR JUDGEMENT Per: Rakesh Kumar: The appellant are manufacturer of sugar chargeable to central excise duty. The period of dispute in this appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Union of India reported in 2008 (228) ELT 517 (Raj). She, therefore, pleaded that the impugned order upholding the cenvat credit demand in respect of the items used for repair maintenance of plant and machinery is not sustainable. 4. Ms. Shweta Bector, ld. DR defended the impugned order reiterating the finding of the Commissioner (Appeals) and citing the judgment of Hon ble A.P. High Court in the case of Sree Rayalaseema Hi-Strength Hypo Ltd. vs. CC CE, Tirupati reported in 2012 (278) ELT 167 (A.P.) pleaded that items, in question are not eligible for cenvat credit and as such there is no infirmity in the impugned order. 5. I have considered the submissions from both the sides and perused the records. The appellant in course of pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, in my view when three High Courts as mentioned above have held that the items used for repair and maintenance of plant and machinery are eligible for cenvat credit it is this view which has to be adopted. Moreover, for permitting cenvat credit what is relevant is as to whether the use of the item has nexus with manufacture and whether without that item manufacture is commercially possible. Since repair and maintenance is an activity which is essential for smooth manufacturing operations and without regular repair and maintenance, manufacturing activity is not commercially feasible, the inputs used for repair and maintenance of the plant would be eligible for cenvat credit. I, therefore, hold that the impugned order disallowing the cenva ..... X X X X Extracts X X X X X X X X Extracts X X X X
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