2005 (6) TMI 178

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..... is admissible to the respondents in respect of two items viz. (1) cement used in civil foundation to provide structural support to plant and machinery and (2) welding electrodes used for repairs and maintenance of plant and machinery, in March 1995. 2. After hearing both sides and considering their submissions, I find that Modvat credit was allowed to the respondents herein in respect of cement .....

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..... redit on welding electrodes under Rule 57Q by relying on the Tribunal's decision in Malabar Cements Ltd. v. CCE, Cochin - 2002 (149) E.L.T. 754 (Tri. - Bang.). In the present appeal, the Revenue has relied on the Tribunal's decision in the case of CCE v. Panyam Cements & Minerals Industries Ltd.- 2003 (160) E.L.T. 278, wherein it was held that welding electrodes used for maintenance of machinery w .....

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..... hange in any substance for the manufacture of final products were eligible for Modvat credit under the Rule. The welding electrodes in question were not used in any of these processes. They were used for repairs and maintenance of machinery only. Hence it must be held that capital goods credit was not available to the assessee in respect of such welding electrodes for the period of dispute. 4. In .....

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