2017 (1) TMI 1384 - AT - Central Excise

CENVAT credit - Welding Electrodes and Gases - MS Plates, Sheets, etc. - used for repair and maintenance and also for fabrication of capital goods - Held that - This Tribunal vide Final Order No. A/30930/2016 dated 30.09.2016 in the appellants own case has held that the credit is admissible on Welding Electrodes and Gases - The issue whether credit is admissible on MS items used for fabrication of as capital goods and support structures has been decided in the case of India Cements Ltd., Vs. CESTAT Chennai 2015 (3) TMI 661 - MADRAS HIGH COURT . The said issue was held in favor of the assessee - credit allowed - appeal allowed - decided in favor of assessee.

Summary

Issues:
i) Admissibility of credit on Welding Electrodes and Gases used in repair and maintenance.
ii) Admissibility of credit on MS Plates, Sheets, etc., used for repair and maintenance and fabrication of capital goods.

Analysis:
1. Issue i - Welding Electrodes and Gases: The Tribunal, in a previous judgment, held that credit is admissible on Welding Electrodes and Gases used in repair and maintenance. This decision was based on a reference to the Larger Bench decision of the Apex Court in the case of Ramala Sahkari Chini Mills Ltd. This establishes the precedent for allowing credit on these items.

2. Issue ii - MS Plates, Sheets, etc.: The Tribunal previously ruled in favor of the assessee that MS Plates and Sheets used for repair and maintenance are eligible for credit. This decision was supported by a judgment of the jurisdictional High Court in the case of CCE & Cus, Visakhapatnam Vs. Rashtriya Ispat Nigam Ltd. Furthermore, the issue of admissibility of credit on MS items used for fabrication of capital goods was addressed. The appellant justified the use of MS items for manufacturing capital goods, including re-conditioning worn-out equipment and erecting new equipment within the factory. The Tribunal referred to relevant cases such as CCE, Tiruchirapalli Vs. India Cements Ltd. and India Cements Ltd. Vs. CESTAT Chennai, where it was held that credit on MS items used for fabrication of capital goods is admissible. Consequently, the Tribunal ruled in favor of the assessee, setting aside the impugned order and allowing the appeals with any consequential reliefs.

In conclusion, the judgment establishes the admissibility of credit on Welding Electrodes and Gases used in repair and maintenance, as well as on MS Plates, Sheets, and other items used for repair, maintenance, and fabrication of capital goods, based on previous decisions and legal precedents cited during the analysis.