TMI Blog2018 (8) TMI 1974X X X X Extracts X X X X X X X X Extracts X X X X ..... he rolling mills for immediate replacement of sudden broken parts like impellers, conveyors part etc. to keep the mill in running condition and also for the purpose of maintenance. Similarly, Tool Bit/Tool Bit Blanks are used for machining, grooving etc. of rolls, small repairing of the various channels for the movement of molten materials to keep the mill running. It is not in dispute that the use of impugned items i.e. Welding Electrodes and Tool Bit/ Tool Bit Blanks has been used in repair and maintenance of the capital goods or making of certain parts, components and spares of the capital goods - Hon ble High Court of Rajasthan in the case of UNION OF INDIA VERSUS HINDUSTAN ZINC LTD. [ 2006 (5) TMI 44 - HIGH COURT RAJASTHAN] held th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are engaged in the manufacture of Non-alloy Alloy Steel Bars Rods classifiable under Chapter 72 of First Schedule to the Central Excise Tariff Act, 1985. Show Cause Notices were issued alleging wrong availment of CENVAT Credit on Welding Electrodes and Tool Bit/Tool Bit Blanks treating them as capital goods. It is the case of the Revenue that Welding Electrodes and Tool Bit/ Tool Bit Blanks are neither specified as capital goods nor are they same parts/accessories/components etc. of any of the capital goods installed in the factory. 4. The adjudicating authority disallowed the CENVAT Credit and ordered for recovery of the same amounting to ₹ 1,31,939.32 and imposed penalty of equal amount under Rule 15 of the Cenvat Credit Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court of Rajasthan in the case of union of India Vs. Hindustan Zink Limited reported in 2007 (214) ELT 510 (Raj.) held that MS/SS plates used in workshop meant for repair and maintenance of machinery, which are used for manufacture of final product and such goods which are necessary for running of plant and upkeeping of machinery directly involved in the manufacturing of products, held to be eligible to avail Modvat Credit. I also find that Hon ble High Court of Rajasthan in case of Hindustan Zink Vs. Union of India 2008 (228) ELT 517 (Raj.) held that welding electrodes are eligible capital goods item. This decision overruled Tribunal s Larger Bench decision of Jaypee Rewa Plant Vs. Commissioner of Central Excise Raipur 2003 (159) ELT 553 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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