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2015 (10) TMI 1370 - CESTAT NEW DELHI

2015 (10) TMI 1370 - CESTAT NEW DELHI - 2015 (323) E.L.T. 618 (Tri. - Del.) - Eligibility of welding electrodes used for repair and maintenance of the plant and machinery for Cenvat credit - Held that:- welding electrodes used for repair and maintenance of plant and machinery are eligible for Cenvat credit - 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. - Decision in the c .....

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]. 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 cuttings, as mentioned in the depot invoices and restrict the .....

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tion for the recipient manufacturer cannot review the assessment of the duty at the end of the supplier manufacturer. - Decided in favour of assessee. - Excise Appeal No. 52173 of 2014 - FINAL ORDER NO. 51598/2015 - Dated:- 7-5-2015 - Rakesh Kumar, Member (T) And S. K. Mohanty, Member (J),JJ. For the Appellant : Shri Rajesh Chhiber, Adv. For the Respondent : Shri M S Negi, AR (DR) ORDER Per: Rakesh Kumar: The appellant company in their factories at Sahibabad (U.P.), Khopoli (Maharashtra) and Ang .....

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gistration 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 pi .....

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nd not the duty originally paid in respect of the pipes at the time of their clearance from the respective factories. The Cenvat credit demand of ₹ 1,20,48,313/- against Sahibabad unit of the appellant company for which two separate show cause notices have been issued, is on this basis. 2. The second point of dispute is as to whether welding electrodes used for repair and maintenance of the plant and machinery of the Sahibabad unit are eligible for Cenvat credit. The department being of th .....

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cording to this item is not covered by the definition of 'capital goods' and, hence, is not eligible for Cenvat credit. 4. It is in view of the above 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 b .....

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.T. 631 (Tribunal), that as regards the Cenvat credit on the welding electrodes used for repair and maintenance of the plant and machinery, the issue stands decided in favour of the appellant by the judgments of three High Courts - judgment of Hon'ble High Court of Rajasthan in the case of Union of India vs. Hindustan Zinc Ltd. reported in 2007 (214) E.L.T. 510 (Raj.), the civil appeal against which has been dismissed by the Apex court vide judgment reported in 2007 (214) E.L.T. A115 (S.C.), .....

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demand of ₹ 1,20,48,313/- in respect of end cuttings received by the appellant unit from its depots for re-melting and manufacture of ingots, the end cuttings received by the Sahibabad unit from various depots are of the precision pipes which had been cleared by Sahibabad unit, Khopoli unit, Angul unit of the appellant company on payment of duty to depots and the depots under their invoices have sent the end cuttings to Sahibabad unit by passing on the proportionate credit, that there is n .....

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avail the credit of the duty paid by the supplier - manufacturer and Central Excise Authorities having jurisdiction over the recipient - manufacturer cannot review the assessment of duty at the end of supplier - manufacturer, that this judgment of the Apex court is squarely applicable to the facts of this case, more so, when the depots while transferring the end cuttings of pipes to Sahibabad unit have merely passed on the proportionate Cenvat credit of the duty suffered on that quantity of pipe .....

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udgments of - Hon'ble Rajasthan High Court in the case of Union of India vs. Hindustan Zinc Ltd. reported in 2007 (214) E.L.T. 510 (Raj.), civil appeal against which has been dismissed by the Apex court vide judgment reported in 2007 (214) E.L.T. A115 (SC), the judgment of Hon'ble Karnataka High Court in the case of Alfred Herbert (India) Ltd. reported in 2010 (257) E.L.T. - 29 (Kar.) and the judgment of Hon'ble Chhattisgarh High Court in the case of Ambuja Cement Eastern Ltd. report .....

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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. reported in 2000 (126) E.L.T. 631 (Tribunal). In view of this, we hold that the denial of Cenvat credit in res .....

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