2012 (6) TMI 427 - AT - Central Excise

Cenvat credit Welding Electrodes used for repair and maintenance of the plant and machinery Held that - In the case of Ambuja Cements Eastern Ltd. (2010 (4) TMI 429 (HC), Cenvat credit is available.

Summary

Issues involved:
Whether welding electrodes used for repair and maintenance of plant and machinery are eligible for cenvat credit.

The judgment pertains to three appeals concerning the eligibility of welding electrodes for cenvat credit. The Asstt. Commissioner disallowed the credit, which was upheld by the Commissioner (Appeals), leading to the filing of these appeals. Despite issuing a hearing notice, no representation from the appellant was present, resulting in an ex parte decision. The Departmental Representative defended the impugned order, relying on previous findings.

After considering the submissions and case records, the judge referenced judgments from the Hon'ble Rajasthan High Court and Chhattisgarh High Court in favor of the appellant's eligibility for cenvat credit on welding electrodes. The judge distinguished a Supreme Court case involving duty paid on welding electrodes, clarifying that the specific issue of cenvat credit eligibility for repair and maintenance was not addressed. Consequently, the impugned order disallowing cenvat credit on welding electrodes for plant and machinery repair was deemed unsustainable and set aside, allowing the appeals.