TMI Blog2013 (7) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... ible for Cenvat credit. For eligibility of an input for Cenvat credit what is relevant is whether the activity in which that input is used has nexus with the manufacture of final product and the nexus has to be determined on the basis of criteria as to whether that activity is commercially essential for manufacture of the final products. In favour of assessee. - E/469/470/2011-SM(BR) - 55718-55719/2013(SM)(BR)(PB) - Dated:- 26-2-2013 - Shri Rakesh Kumar, J. Ms. Sukriti Das, Advocate, for the Appellant. Shri R.K. Verma, DR,for the Respondent. ORDER Theappellant are manufacturers of Sugar and Molasses chargeable to Central Excise duty. They avail cenvat credit of excise duty paid on input or input service. The point of dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9, that the appeal filed by the Government against Hon ble Rajasthan High Court s Judgment was dismissed by the Apex Court vide judgment reported in 2007 (214) E.L.T. A115, and that in view the settled legal position on this issue, the impugned order of the Commissioner (Appeals) is not sustainable. 4. Sh. R.K. Verma, learned Departmental Representative, defended the impugned order by reiterating the findings of Commissioner (Appeals) and citing the judgment of Hon ble High Court of Andhra Pradesh in the case of Sree Rayalaseema Hi-Strength Hypo Ltd. v. Commissioner of Customs Central Excise, Tirupati reported in 2012 (278) E.L.T. 167, pleaded that the goods used for repair and maintenance of plant and machinery cannot be said to be th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reported in 2012 (278) E.L.T. 167. Since three High Courts as mentioned above, have held that the inputs used for repair and maintenance of plant and machinery are eligible for cenvat credit, I am of the view that it is these judgments which have to be followed. 5.1 Moreover, during the period of dispute, the definition of inputs covered all the goods except LDO, HSD and petrol used in or in relation to manufacture of final products, whether directly or indirectly and whether contained in the final product or not. The scope of the expression - used in or in relation to manufacture of final products, whether directly or indirectly and whether contained in final products not , is much larger than the scope of the expression used in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the expression used in the definition of input in Rule 2(k) of the Cenvat Credit Rules, 2004 - used in or in relation to manufacture of final products, whether directly or indirectly and whether contained the final products or not is much wider than the scope of the expression used in manufacture of and therefore the expression- used in or in relation to manufacture of final product , whether directly or indirectly in the definition of input in Rule 2(2) would cover all the .goods whose use is commercially expedient in manufacture of final products. 5.3 Repair and maintenance of plant and machinery is an activity without which smooth manufacturing is not possible. Commercially, manufacturing activity is not possible with malfu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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