TMI Blog2016 (11) TMI 1326X X X X Extracts X X X X X X X X Extracts X X X X ..... 07 is allowed with consequential benefits, if any. In view of the change in the provisions of Cenvat credit and now the credit being available on all the items utilized in the factory of production, we hold that the appellant is entitled to Cenvat credit on all the items in question including welding electrodes. We have been informed that the issue of Cenvat credit on welding electrodes utilized for the purpose of repair and maintenance is pending consideration before Hon’ble Apex Court, but no stay have been granted of the orders of the Tribunals and High Courts wherein credit have been allowed. As we have allowed credit on welding electrodes in several other appeals before this tribunal, for the sake of consistency we allow credit in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The biogas plant was used for treatment of distillery effluents. The gas produced in the plant was used for manufacture of denatured ethyl alcohol which was excisable. Further, contending that under Rule 2(K) of CCR, 2004 pollution control equipment was specifically covered at Serial No. II of the definition of capital goods. And, further the definition of capital goods includes components spares and accessories also of capital assets including pollution control equipment. The SCN was adjudicated vide OIO dated 30/11/2006 and the proposed demand confirmed along with equal amount of penalty under Rule 15 of CCR observing that pollution control equipment, spares cannot be considered as equipment directly or integrally involved in the process ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, sun and weather, for their efficient working. Besides various items of capital goods including staging/ supporting structures were fabricated out of these items alongwith other articles of iron in the factory workshop itself for captive consumption. The structure and staging had to be build to place the machinery and equipment at the required height and to make it possible for the workers to assess the machines for operating them and for their maintenance and repair. The CAF jointing sheet, asbestos packings were used as packing material at various stations of sugar mill plant in jointing various types of pipes to make them leak proof. Further welding electrodes were used for fabrication and installation of accessories and various parts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and maintenance of plant and machinery during the period October, 2004 to August, 2005. It was held that welding electrodes are not covered under capital goods and hence credit is not admissible. Further, reliance is placed on the ruling of Allahabad High Court in case of Upper Ganges Sugar Industries Ltd. vs. Commr. of Cus. C. Excise 2015(324) E.L.T. 94, wherein during the period August, 1999 to September, 1999 welding electrodes were used for welding of machines and machine parts. Welding electrodes were used to form layer over surface of mill rollers in order to harden them. It was held that electrodes do not constitute an integral part necessary to the constitution of whole articles and without which articles would not be complete. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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