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2015 (2) TMI 1220 - HC - Central ExciseCenvat credit - welding electrodes - inputs used for repair and maintenance of the plant and machinery - Held that - In view thereof and for the reasons stated in judgment of date in M/s. DSM Sugar Asmoli v. Commissioner of Central Excise 2015 (2) TMI 1178 - ALLAHABAD HIGH COURT the substantial questions of law formulated above are answered in favour of Revenue and against assessee - Appeal allowed.
Issues:
Appeal against Tribunal's judgment allowing Modvat credit for welding electrodes. Substantial questions of law on eligibility of Cenvat credit for repair and maintenance of plant and machinery. Analysis: The High Court heard an appeal under Section 35G of the Central Excise Act, 1944, filed by the Revenue against a judgment of the Tribunal that allowed the claim of the assessee for Modvat credit related to welding electrodes for the period May 2004 to December 2004. The Court framed substantial questions of law, including the eligibility of Cenvat credit for inputs used in the repair and maintenance of plant and machinery, and the requirement for specific details to support such claims. The counsels for both parties referred to a previous judgment in a similar case, which they argued covered the issues raised in the present appeal. The Court noted the introduction of the Cenvat Credit Rules, 2004, and the definitions of "capital goods" and "input" contained therein. The counsels did not dispute that the definitions under the previous rules were substantially similar to those under the new Rules, specifically concerning the use of welding electrodes in repair and maintenance activities in a Sugar Mill. Relying on the precedent set by the judgment in M/s. DSM Sugar Asmoli v. Commissioner of Central Excise, the Court found in favor of the Revenue and against the assessee on the substantial questions of law raised. Consequently, the Court allowed the appeal, setting aside the Tribunal's order that granted Modvat credit and restoring the order passed by the Commissioner (Appeals) on 28-2-2006. The judgment clarified the application of Cenvat credit rules to inputs used in repair and maintenance activities and emphasized the importance of complying with the requirements for claiming such credits.
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