TMI Blog2015 (10) TMI 1370X X X X Extracts X X X X X X X X Extracts X X X X ..... d in [2006 (11) TMI 551 - SUPREME COURT OF INDIA]. As regards the capital goods Cenvat credit in respect of CI Slag pot, this issue also stands decided in favour of the appellant by the judgment of the Tribunal in the case of CCE, Delhi - III vs. Jindal Strips Ltd. reported in [2000 (2) TMI 158 - CEGAT, NEW DELHI]. In view of this, we hold that the denial of Cenvat credit in respect of this demand and Cenvat credit on this basis is not sustainable. Various depots had transferred the end cuttings of pipes under invoices wherein the proportionate duty paid on the pipes at the time of clearance from their respective factories had been mentioned. The Department seeks to re-calculate this duty on the basis of the scrap value of the end cut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... old from the depot under cenvatable invoices issued by the depots. The depots have registration as registered dealers. However, since, the pipes are sold on the basis of length, some end cuttings are left which are not saleable, these end cuttings of pipes are sent by the depots to Sahibabad unit under invoices issued by the depots as registered dealer. In these invoices, the concerned depots mention the proportionate duty paid in respect of pipes. The Sahibabad unit on receiving the end cuttings of pipes availed the Cenvat credit on the basis of these invoices and used these pipes for re-melting for manufacture of ingots. According to the Department, since while the pipes received by the depots had suffered duty on the value varying from & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e that after issue of show cause notice, the Commissioner by order-in-original No. 20-21/Commr./GZB/2013-14 dated 21/01/14 has confirmed the Cenvat credit demand of ₹ 1,21,99,524/- (Rs. 1,20,48,313/- + ₹ 1,51,211/-) for the period from April 2008 to March 2013 against the appellant alongwith interest on it under Section 11AA and beside this, imposed penalty of equal amount on them under Section 11AC of Central Excise Act, 1944. Against this order of the Commissioner, this appeal has been filed. 5. Heard both the sides. 6. Shri Rajesh Chhibber, Advocate, the learned Counsel for the appellant, pleaded that so far as the Cenvat credit on CI Slag pot is concerned, the issue stands decided in favour of the appellant by the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have sent the end cuttings to Sahibabad unit by passing on the proportionate credit, that there is no justification for re-calculation of the duty payable on the end cuttings of pipes on the basis of its scrap value, mentioned in the invoices and confirming the Cenvat credit to that amount, that in this regard he relies upon the judgment of the Apex Court in the case of Commissioner of Central Excise Customs vs. MDS Switchgear Ltd. reported in 2008 (229) E.L.T. 485 (S.C.), wherein it has been held that the recipient manufacturer who has received the inputs from a supplier is entitled to avail the credit of the duty paid by the supplier - manufacturer and Central Excise Authorities having jurisdiction over the recipient - manufacturer cann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. vs. CCE, Tirupati reported in 2012 (278) E.L.T. 167 (A.P.) has taken a contrary view, since majority of the High Courts have held that welding electrodes used for repair and maintenance of plant and machinery are eligible for Cenvat credit, in our view it is these judgments of these High Courts which would hold the field. Therefore, we hold that the denial of Cenvat credit in respect of welding electrodes used for repair and maintenance of plant and machinery and Cenvat credit demand on this basis is not sustainable. 10. As regards the capital goods Cenvat credit in respect of CI Slag pot, this issue also stands decided in favour of the appellant by the judgment of the Tribunal in the case of CCE, Delhi - III vs. Jindal Strips Ltd. re ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
