TMI Blog2015 (10) TMI 621X X X X Extracts X X X X X X X X Extracts X X X X ..... ready condition i.e. ready for use, no manufacture of cement can take place. Accordingly, the welding electrodes used for repair and maintenance of plant and machinery are indirectly used in manufacture of cement. Accordingly, I hold that the same qualifies for definition of input and the assessee is entitled to take CENVAT Credit on the same. - Manufacture of the capital goods and their repair and maintenance are synonymous terms which are required for manufacture of the end product. It is evident from the definition of input that whatever is used and assists in the process of manufacture, qualify as inputs within the meaning of input under Rule 2(k). - Impugned order is set aside - Decided In favour of assessee. - Appeal No. E /1981 & 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provision i.e. Rule 2(k) of Cenvat Credit Rules, the 'inputs' were identified as follows: - input means- (i) all goods, except light diesel oil, high speed diesel oil and motor spirit, commonly known as petrol, used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not and includes lubricating oils, greases, cutting oils, coolants, accessories of the final products cleared along with the final product, goods used as paint, or as packing material, or as fuel, or for generation of electricity or steam used in or in relation to manufacture of final products or for any other purpose, within the factory of production; (ii) all goods, excep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on-II, wherein it is stated that input includes goods used in the manufacture of capital goods which are further used in the factory of manufacture. 5.1 The appellant further states that ruling of the JaypeeRewa Plant (supra) has been overruled by the Hon'ble Rajasthan High Court in the case of Hindustan Zinc Ltd. Vs. Union of India 2008 (228) ELT 517 (Raj.), wherein the welding electrodes were used for maintenance of plant and machinery. The Hon'ble High Court examined the Larger Bench's ruling in JaypeeRewa Plant (supra) and also examined the ruling of the Hon'ble Apex Court in the case of Commissioner Vs. Jawahar Mills Ltd. 2001 (132) ELT 3 (SC) and J.K. Cotton Spinning Weaving Mills Co. Ltd. Vs. Sales Tax Officer 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods, but for that process, manufacturing or processing of the goods would be commercially inexpedient, goods required in that process would, fall within expression 'in the manufacturing of goods'. Thus, overruling judgment of JyapeeRewa Plant, the Hon'ble Rajasthan High Court following the spirit of law, laid down in J.K Cotton's case, answered the question in favour of the assessee and against the Revenue. 5.2 The learned Counsel further relies on the ruling of the Hon'ble Rajasthan High Court in the case of UOI Vs. Hindustan Zinc Ltd. 2007 (214) ELT 510 (Raj), wherein the question involved was whether the Tribunal was right in law in allowing the Modvat credit on the item MS/SS plates in the maintenance and repair w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SreeRayalaseema Hi-Strength Hypo Ltd. Vs. Commissioner of Central Excise, Tirupati 2012 (278) ELT 167 (AP), wherein similar question of welding electrodes used for repair and maintenance of plant and machinery was involved during the period 1.6.2003 to 31.6.2008. After taking notice of the definition of input under Rule 2(k) of the Cenvat Credit Rules, 2004 and examining the ruling in the case of Hindustan Zinc Ltd. ofHon'ble Rajasthan High Court and JaypeeRewa plant of Larger Bench of this Tribunal, observed that they are not inclined to agree with the submission of the assessee as the second explanation to the definition of 'input' under Rule 2(k) of the Cenvat Credit Rules puts it beyond doubt that unless the goods are used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s (supra), I find that Hon'ble High Court has not examined the definition of input in detail and accordingly the said ruling does not lead any binding precedent. So far the ruling of the Hon'ble Andhra Pradesh High Court in concerned, in the case of Sree Rayalaseema Hi-Strength (supra), I respectfully disagree with the observation of the Hon'ble High Court in view of my finding and observation made herein above. I find that manufacture of the capital goods and their repair and maintenance are synonymous terms which are required for manufacture of the end product. It is evident from the definition of input that whatever is used and assists in the process of manufacture, qualify as inputs within the meaning of input under Rule 2(k ..... X X X X Extracts X X X X X X X X Extracts X X X X
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