TMI Blog2013 (7) TMI 786X X X X Extracts X X X X X X X X Extracts X X X X ..... Grasim Industries Ltd. reported in [2011 (10) TMI 2 - SUPREME COURT OF INDIA] has held that repair & maintenance of machinery is not manufacture and therefore steal scrap, arising in course of the said activity is not excisable, this judgment does not help the Department, as for determining the eligibility for Cenvat Credit of an item used in an activity, what is relevant is as to whether without that activity in which the item, in question, is used, manufacturing operation are commercially feasible, and it is not relevant as to whether that activity by itself amounts manufacturer. In the case of Sree Rayalaseema Hi-Strength Hypo Ltd. reported in [2012 (11) TMI 255 - ANDHRA PRADESH HIGH COURT] decided by Hon’ble Andhra Pradesh High Court, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion that Hon ble Chhattisgarh High Court in case of Ambuja Cement Eastern reported in 2010 (256) ELT-690 and Hon ble Rajasthan High Court in case of Hindustan Zinc Ltd., reported In 2008(228) ELT-517 (Raj.) and Hon ble Karnataka High Court in case of Alfred Herbert (India) Ltd. Vs. Commissioner of Central Excise, Bangalore-I reported in 2010(257) ELT-29(Kar.) have held that welding electrodes used for repair and maintenance for plant and machinery are eligible for Cenvat Credit and that in view of this, the impugned order upholding the denial of the Cenvat Credit in respect of this items which is essential for smooth manufacturing operations, is not correct. 4. Sh. Sanjay Jain, Ld. departmental representative, defended the impugned order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perused the records. There is no dispute that the welding electrodes in question have been used for repair maintenance of plant and machinery. It is also not disputed that regular repair maintenance of plant and machinery of a Sugar Mills is an essential activity. 6. The definition of input during the period of dispute, as given in Rule 2 (k) of the Cenvat Credit Rules 2004, covered- all goods except Light Diesel Oil, HSD and Motor Spirit commonly known as petrol, used in or in relation to manufacture of final products whether directly or indirectly and whether contained in the final product or not and includes. The expression used in or in relation to manufacture of final products whether directly or indirectly is obviously wider in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oration Ltd. Vs. Commissioner of Commercial Taxes, Bihar CA No. 1021 of 1969 dt. 19.10.1964. Thus, in term of the above judgment of the Apex Court the goods used in an activity, without which manufacturing, operations, though theoretically possible, are not commercially feasible, have to be treated as ,used in the manufacture of the final products. 6.1 When the Apex Court has interpreted the expression used in manufacture in the above manner, the scope of the expression used in or in relation to manufacture whether directly or indirectly would be much wider. The Hon ble Calcutta High Court in case of Singh Alloys Steel Ltd. Vs. Assistant Collector of Central Excise reported in 1993(66) ELT-594(Cal.) has held that the definition of inp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... giving any reason does not lay down any law. Hon ble Rajasthan High Court in case of Hindustan Zinc Ltd. reported in 2008(228) ELT-517 (Raj.) and Hon ble Karnataka High Court in case of Alfred Herbert (India) Ltd. reported in 2010(257) ELT-29 (Kar) has also held that the goods used for repair maintenance of plant and machinery are eligible for Cenvat Credit. 8. Though Apex Court in case of Grasim Industries Ltd. reported in 2011 (273) ELT- 10 (SC) has held that repair maintenance of machinery is not manufacture and therefore steal scrap, arising in course of the said activity is not excisable, this judgment does not help the Department, as for determining the eligibility for Cenvat Credit of an item used in an activity, what is relev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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