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TMI Blog2015 (10) TMI 285X X X X Extracts X X X X X X X X Extracts X X X X ..... R Per P M Saleem The issue before us in the present appeal is whether Nitrogen Cylinders and Welding Electrodes used by the appellants in their factory are eligible for Cenvat Credit. 2. Heard both sides. The learned counsel for the appellants submits that they have availed Cenvat Credit on Nitrogen Cylinders as capital goods, under the category of storage tank which is covered under the defini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counsel and submits that the definition of capital goods is an inclusive definition and Nitrogen Cylinder cannot be treated as a storage tank and therefore the same is not eligible for Cenvat Credit. He also contented that Welding Electrodes cannot be considered as capital goods and therefore the same is also not eligible for Cenvat Credit. He relied upon the decision of the Hon'ble Supreme C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Steel and Alloys Vs. Commissioner of C. Ex., Bhavnagar (Supra) as follows:- "3) The contention of the Revenue is that cylinder has no role to play either directly or indirectly in the manufacture of finished goods. Therefore, it is not entitled for credit. 4) I find that during the relevant period the definition of capital goods was as under:- "Capital goods means":- (i) All goods falling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dvat Credit as capital goods. As in the present case cylinders are used for storage of High Pressure gas used in the factory of production they are entitled for credit. Accordingly, impugned order is set aside and the appeal is allowed. Following the same decision and above analysis, it is held that the subject Nitrogen Cylinder is a storage tank and eligible for Cenvat Credit." 5. As regards W ..... X X X X Extracts X X X X X X X X Extracts X X X X
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