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TMI Blog2019 (6) TMI 317X X X X Extracts X X X X X X X X Extracts X X X X ..... esentative for the Respondent. ORDER PER: MR. P. VENKATA SUBBA RAO Heard both sides and perused the records. The issue which falls for consideration in this case is whether the appellant is entitled to CENVAT credit on the welding electrodes used within the factory of manufacture after 01.04.2011. It is the case of the Revenue that the welding electrodes were not used by the appellant for manu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalties as proposed in the show-cause notices. 2. Aggrieved, the appellant appealed before the first Appellate Authority who upheld the order of the lower authority and rejected their appeals. Hence these appeals. 3. Learned counsel for the appellant submits that after the Rule 2(k) of CENVAT Credit Rules 2004 was amended on 01.03.2011, (effective from 01.04.2011) and the definition of 'input ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roneous as the capital goods in question are those which are used by them for manufacture of their final products. The welding electrodes are used in maintenance of their capital goods. Therefore there is a direct relationship between the use of welding electrodes and the manufacture of their final products. Once this position is accepted, CENVAT credit cannot be denied on the welding electrodes t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upra) of this very Bench and therefore they are entitled to CENVAT Credit. Learned A.R. reiterates the findings of the impugned orders and asserts that the welding electrodes in question were used post 01.04.2011 but not in manufacture of final products but for repair and maintenance of machinery. These welding electrodes have no relationship whatsoever with the manufacture of final products and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this interpretation of Clause (F) of Rule 2(k) of CENVAT Credit Rules 2004. If welding electrodes are used for repair and maintenance of machinery and such machinery are used in manufacture of final products and the welding electrodes are used within the factory of manufacture, they are squarely covered by the definition of "inputs" under Rule 2(k) of CENVAT Credit Rules 2004. Therefore they are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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