TMI Blog2013 (5) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... ture and not whether use of that item is part of the manufacture. Nexus has to be determined on the basis as to whether without use of that item manufacture is commercially feasible. Since repair & maintenance of plant and machinery is necessary for smooth manufacturing operation, the cenvat credit be eligible for credit would be admissible in respect of inputs used in repair and maintenance of plant and machinery. In favour of assessee - 128 of 2008 - - - Dated:- 25-3-2013 - Shri Rakesh Kumar, J. For the Appellant: Ms. Shweta Bector, Advocate For the Respondent: Shri R.K. Verma, A.R JUDGEMENT Per: Rakesh Kumar: The respondent is manufacturer of sugar chargeable to central excise duty. They availed cenvat credit of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and erection of semikestner juice heater, clarifier etc; and (c) The above uses of welding electrodes and various steel items shows that the same have been used either in repair and maintenance of plant and machinery or fabrication of the various components of the machinery which are also capital goods. With regard to jointing gasket sheet the Commissioner (Appeals) observed that the same undisputedly have been used for packing of slide glass frame of pan kestner, juicer, heater, pump pipeline etc. to prevent the leakage of juice, exhaust steam and liquids. 1.1 Against the above order of the Commissioner (Appeals), this appeal has been filed by the Revenue and in respect of Revenue s appeal, the respondent have filed cross objection. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Angles and H.R. sheet has not been disputed and Commissioner (Appeals) has given a clear finding that all these items have been either used in repair and maintenance or for fabrication of plant and machinery and that jointing gasket sheets have been used to prevent the leakage of liquids without which the manufacturing operation are not possible; that the inputs used for fabrication of the capital goods are covered by the definition of inputs and, hence, are eligible for cenvat credit and that the inputs used for repair and maintenance of the existing plant and machinery are also eligible for cenvat credit in view of judgment of Chhattisgarh High Court in the case of Ambuja Cements Eastern Ltd. vs. CCE, Raipur reported in 2010 (256) ELT 69 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndia) Ltd. have held that the goods used for repair and maintenance are eligible for cenvat credit, it is these judgments which have to be followed. Moreover for permitting cenvat credit in respect of an item what is relevant is as to whether the use of that item has nexus with manufacture and not whether use of that item is part of the manufacture. Nexus has to be determined on the basis as to whether without use of that item manufacture is commercially feasible. Since repair maintenance of plant and machinery is necessary for smooth manufacturing operation, the cenvat credit be eligible for credit would be admissible in respect of inputs used in repair and maintenance of plant and machinery. 6. In view of above discussion, I do not fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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