TMI Blog2014 (2) TMI 548X X X X Extracts X X X X X X X X Extracts X X X X ..... urts as mentioned above 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 CENVAT credit is not sustainable - Followin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. Only requirement is that they should be used in the factory of production. Further he also relied upon the decision in the case of Rosa Sugar Works Vs. CCE, Kanpur [2001 (131) E.L.T. 89 (Tri.)] wherein modvat credit was held to be admissible on plates, bars and rods used for repairing damaged parts of machinery, storage tanks, boilers etc. He also relied upon the decision of the Tribunal in the case of Hindustan Zinc Ltd. Vs. CCE, Jaipur II [2002 (105) ECR. 648 (Tri.)] wherein Tribunal took the view that credit would be eligible on SS plates, Plain plates, iron and steel items used for repairing machinery installed in the factory. 4. Revenue is in appeal on the ground that the appellant did not produce any evidence whatsoever with reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excise duty would be available in respect of MS bars/SS plates used in workshop meant for repairs and maintenance of machinery which are used for manufacture of final product. He submits that this decision was upheld by the Hon'ble Supreme Court and therefore has to be relied upon. The fact of affirmation by the Hon'ble Supreme Court was reported in [2007 (214) E.L.T. A115 (S.C)]. Learned AR submits that in the case of Panipat Cooperative Sugar Mills Ltd., there was a submission that such MS plates etc. were used in manufacture of components and therefore the case can be distinguished. 6. I have considered the submissions made by both the sides. As regards the submission relating to Panipat Cooperative Sugar Mills Ltd. , I take note of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ati 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." 6.1. Further in the case of Panipat Cooperative Sugar Mills Ltd. , also the observations of Tribunal in paragraph 5 would be relevant and same are reproduced. "I have considered the submissions from both the sides and perused the records. The appellant in course of proceedings before the Deputy Commissioner as well as Commissioner (Appeals) pleaded that during the operation of sugar mill certain parts and components of the machinery get worn out and to replace the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dopted. 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 CENVAT credit is not sustainable. The same is set aside. The appeal is allowed." 7. Paragraphs reproduced above would clearly show that the Tribunal had considered all the decisions including the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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