TMI Blog2016 (12) TMI 767X X X X Extracts X X X X X X X X Extracts X X X X ..... fred Herbert (India) Ltd.[2010 (4) TMI 424 - KARNATAKA HIGH COURT], following the ratio laid in the case of Hindustan Zinc Ltd.[2006 (5) TMI 44 - HIGH COURT RAJASTHAN], has held the issue in favor of assessee holding that the credit availed on subject items used for repairs and maintenance of the machinery is eligible for credit. In view thereof, following the judgment laid in the above cases as w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pairs and maintenance of capital goods. Department considered such plates in the nature of MS Plates, Angles, Sheets, Joists, Coils etc., and entertained the view that credit is not admissible. The appellant was issued show cause notice demanding duty of ₹ 3,12,021/- along with interest and for imposition of penalty. After due process of law the adjudicating authority confirmed the demand, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... running of plant and is otherwise essential for its smooth and regular operations. Without proper up-keep and maintenance, the principal plant and machinery cannot function properly. Use of such capital goods is essential for smooth running of plant with greater efficiency. In other words, the goods in question are essential supplement to the plant and machinery for use in manufacturing goods, for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dropped the proceedings of appellant in respect of demand raised in subsequent year vide Order-in-Appeal No. GUN-EXCUS-000-APP-219-15-16 dated 15.03.2016. In view thereof, following the judgment laid in the above cases as well as taking note of the dropping of proceedings in the subsequent year in the appellant s own case I find that the impugned order is unsustainable. The same is set aside. Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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