2013 (7) TMI 830 - AT - Central Excise

Cenvat credit - Welding Electrodes - Commissioner disallowed cenvat credit - Held that - Welding Electrodes used for repair and maintenance of plant and machinery are eligible for cenvat credit - Following decision of AMBUJA CEMENTS EASTERN LTD. Versus COMMISSIONER OF C. EX., RAIPUR 2010 (4) TMI 429 - CHHAITISGARH HIGH COURT and UNION OF INDIA Versus HINDUSTAN ZINC LTD. 2006 (5) TMI 44 - HIGH COURT RAJASTHAN - Decided in favour of assessee.

Summary

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

Analysis:
The case revolves around the eligibility of Welding Electrodes for cenvat credit. The Asstt. Commissioner initially disallowed the credit, leading to a demand of Rs.2,21,947/-, interest, and a penalty on the appellant. The Commissioner (Appeals) upheld this decision. However, the appellant filed an appeal against this order.

During the proceedings, no one appeared for the appellant. The Departmental Representative defended the decision, arguing that Welding Electrodes do not qualify as inputs or capital goods for cenvat credit.

The presiding judge, Rakesh Kumar, reviewed the arguments and referred to previous judgments to make a decision. The judge cited the judgments of the Hon'ble Chattisgarh High Court and Rajasthan High Court, which established that Welding Electrodes used for repair and maintenance of plant and machinery are indeed eligible for cenvat credit. Based on this legal precedent, the judge concluded that the impugned order disallowing the credit was unsustainable and set it aside, ultimately allowing the appeal.