2010 (10) TMI 1135 - AT - Central Excise

Summary

Issues involved: Denial of Cenvat credit on welding electrodes, S.S. Alloy steel, S.S. Trash plate used for repair and maintenance of plant and machinery.

Summary:
The appellant appealed against the denial of Cenvat credit on items used for repair and maintenance of plant and machinery, which were deemed ineligible by lower authorities. The appellant argued for eligibility based on precedents such as UOI v. Hindustan Zinc Ltd., Ambuja Cement, and CCE, Bangalore v. Alfred Herbert (India) Ltd. The respondent, however, cited previous Tribunal decisions to support the denial of credit. After considering both sides, the Tribunal found that the earlier decisions restricting Cenvat credit were no longer applicable due to subsequent amendments in the Cenvat Credit Rules, 2002. The Tribunal referred to cases like Alfred Herbert (India) Ltd. and Ambuja Cement where Cenvat credit for maintenance of plant and machinery was allowed, and decided in favor of the appellant, allowing the credit on welding electrodes and other items used for repair and maintenance. The impugned order was set aside, and the appeal was allowed with consequential relief.