2015 (2) TMI 1098 - HC - Central Excise

Cenvat Credit / Modvat Credit - appellant claimed that Welding Electrodes would fall in the category of Capital Goods - Tribunal 2007 (8) TMI 558 - CESTAT NEW DELHI denied the credit in respect to Welding Electrodes - Held that - For the reasons given in the judgment in M/s. Upper Ganges Sugar & Industries Ltd. v. Commissioner Customs & Central Excise 2015 (5) TMI 569 - ALLAHABAD HIGH COURT the aforesaid question of law is answered in favour of Revenue and against Assessee.

Summary

Issues:
Appeal under Section 35G of Central Excise Tax Act, 1944 regarding eligibility of CENVAT Credit on 'Welding Electrode' as 'Capital Goods'.

Analysis:
The appeal in question was filed by an Assessee, a sugar manufacturing industry, challenging the denial of CENVAT Credit on 'Welding Electrode' by the Tribunal. The appellant contended that 'Welding Electrode' falls under the category of 'Capital Goods' as per Rule 57-Q of Central Excise Rules, 1944. The primary issue revolved around whether the appellant is entitled to claim CENVAT Credit on 'Welding Electrode' as 'Capital Goods'.

Upon review, it was found that the appellant had availed CENVAT Credit on 'Welding Electrode' as 'Capital Goods' for a specific period, but the Excise Authorities rejected this claim. The matter escalated through various levels of appeal, with the Tribunal ultimately dismissing the appellant's claim. The key question for consideration was whether the appellant could legitimately claim CENVAT Credit under Rule 57-Q of Rules, 1944 on 'Welding Electrode' as 'Capital Goods'.

The period of dispute was specified as September 2000 to December 2000, during which Rule 57-Q was applicable. Reference was made to a similar case, where the issue was settled in favor of the Revenue. Citing the judgment in the related case, the Court ruled in favor of the Revenue and against the Assessee. Consequently, the appeal was dismissed, with no order issued regarding costs.

In conclusion, the judgment addressed the specific issue of the eligibility of CENVAT Credit on 'Welding Electrode' as 'Capital Goods' under the Central Excise Tax Act, 1944. Despite the appellant's contentions, the Court upheld the decision of the Excise Authorities and the Tribunal, ruling in favor of the Revenue and dismissing the appeal.