TMI Blog2019 (5) TMI 1089X X X X Extracts X X X X X X X X Extracts X X X X ..... ns is only whether they get excluded by the exclusion part of the definition as materials which have no relationship whatsoever to the manufactured final products. It is not in dispute that the materials in question were used for repair and maintenance of the machinery which were used for manufacture of final product - thus there is a direct relationship between goods which were used and the manufactured of final products and therefore they were not excluded by clause (f) of the Rule 2(k). Credit allowed - appeal allowed - decided in favor of appellant. - Excise Appeal No. 31224, 31230 of 2018, 30209, 30210 of 2019 - A/30495-30498/2019 - Dated:- 30-4-2019 - Mr. P. VENKATA SUBBA RAO, MEMBER (TECHNICAL) Shri B. V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng with the final product, the value of which is included in the value of the final product and goods used for providing free warranty for final products; or (iii) all goods used for generation of electricity or steam for captive use; Or (iv) all goods used for providing any output service, but excludes (A) light diesel oil, high speed diesel oil or motor spirit, commonly known as petrol; (B) any goods used for (a) construction or execution of works contract of a building or a civil structure or a part thereof; or (b) laying of foundation or making of structures for support of capital goods, except for the provision of service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e factory of their manufacture as can be seen from the findings of both the lower authorities. It is also not in dispute that these materials were used for repair and maintenance of their machinery which were, in turn, used for manufacture of their final products. Credit was denied by both the lower authorities on the ground that there is no relationship whatsoever of these goods with the manufacture of the final product because these materials were not going into manufacture of the final product. Learned Counsel for the appellant submits that the machinery was used for manufacture of final product and the goods in question were used for maintenance of machinery. Therefore, it is incorrect to say that the goods in question having relationsh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9.04.2011 at serial no.3 clarified as follows: S.No. Issue Clarification 3. How is the no relationship whatsoever with the manufacture of a final product to be determined? Credit of all goods used in the factory is allowed except in so far as it is specifically denied. The expression no relationship whatsoever with the manufacture of a final product must be interpreted and applied strictly and not loosely. The expression does not include any goods used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tured final products. It is not in dispute that the materials in question were used for repair and maintenance of the machinery which were used for manufacture of final products. I therefore, find that there is a direct relationship between goods which were used and the manufactured of final products and therefore they were not excluded by clause (f) of the Rule 2(k). I also find that the same issues in the case laws of CEAT Ltd., (supra), Jindal Steel Ltd., (supra) and HPCL (supra) credit of cenvat as inputs was allowed on the material used in maintenance and repair of the machinery. In view of the above, I find that the impugned order is unsustainable and needs to be set aside and I do so. Appeals are allowed and the impugned order is set ..... X X X X Extracts X X X X X X X X Extracts X X X X
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