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2015 (2) TMI 1179 - HC - Central ExciseCenvat credit - Welding Electrodes falling under Chapter Heading No. 8311.00 as inputs - used in the repair and maintenance of plant and machinery - Held that - the issue raised in this appeal is squarely covered by judgment of date in M/S DSM Sugar Asmoli Vs. Commissioner of Central Excise, Meerut-II 2015 (2) TMI 1178 - ALLAHABAD HIGH COURT . Therefore, for the reasons stated in above judgment that under Rules 57A and 57B, there is no term within which Welding Electrodes , as such, may fall, the substantial question of law, is answered in favour of Revenue and against Assessee. - Decided in favour of Revenue
Issues:
Admissibility of Cenvat Credit on welding electrodes used in the repair and maintenance of plant and machinery. Analysis: The appeal under Section 35G of the Central Excise Act, 1944 was filed by the Revenue against the judgment of the Customs, Excise and Service Tax Appellate Tribunal, New Delhi, which allowed the Assessee's claim for entitlement of MODVAT Credit in relation to welding electrodes for a specific period. The substantial question of law formulated by the Court pertained to the admissibility of Cenvat Credit on welding electrodes as inputs used in the repair and maintenance of plant and machinery. The issue was found to be covered by a previous judgment in Central Excise Appeal No. 51 of 2008. It was noted that although new Rules, namely the CENVAT Credit Rules, 2004, were in place, the definitions of "capital goods" and "input" remained consistent with the previous rules concerning welding electrodes used in repair and maintenance in a Sugar Mill. The Court, based on the precedent judgment in M/S DSM Sugar Asmoli Vs. Commissioner of Central Excise, ruled in favor of the Revenue and against the Assessee. Consequently, the appeal was allowed, setting aside the Tribunal's order and restoring the order passed by the Commissioners (Appeals) on a previous date. The decision clarified the applicability of Cenvat Credit rules in the context of welding electrodes and affirmed the position in line with the previous legal interpretation.
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