2016 (12) TMI 1047 - AT - Central Excise

Cenvat Credit - Welding Electrodes used as inputs for repair and maintenance of capital goods in the factory of manufacture of sugar - Held that - the decision in the case of Ganga Kishan Sahkari Chinni Mills Ltd. Vs. Commissioner of Central Excise, Meerut-I 2015 (10) TMI 2526 - CESTAT ALLAHABAD relied upon, where it was held that the Cenvat credit of duty paid on welding electrodes used in repair and maintenance of capital goods is treated as inputs and is admissible - Following the decisions of this Tribunal, I hold that in the present four cases Cenvat credit of duty paid on welding electrodes used for repair and maintenance of capital goods is admissible to the appellant - appeal allowed - decided in favor of appellant-assessee.

Summary

Issues:
- Availing Cenvat Credit on Excise duty paid on Welding Electrodes used for repair and maintenance of capital goods.

Analysis:
The judgment by the Appellate Tribunal CESTAT ALLAHABAD involved four appeals with the same appellant and issue but for different periods. The appellant availed Cenvat Credit of duty of Excise paid on Welding Electrodes used for repair and maintenance of capital goods in the sugar manufacturing factory. The impugned Orders-in-Appeal for each appeal were dated in 2014 and 2015. The original authority denied the Cenvat credit, leading to appeals before the Commissioner (Appeals). The appellant argued that previous Tribunal decisions allowed credit for welding electrodes used for repair and maintenance of capital goods. The Tribunal referred to specific cases where it was held that inputs required for upkeep and maintenance are eligible for Cenvat credit. The Tribunal also highlighted a case where the issue of treating welding electrodes as capital goods was not relevant to the admissibility of Cenvat credit for repair and maintenance purposes.

The appellant's counsel cited precedents where the Tribunal allowed Cenvat credit on welding electrodes for repair and maintenance of capital goods. The Tribunal, after carefully examining the facts and previous decisions, concluded that the Cenvat credit of duty paid on welding electrodes for repair and maintenance of capital goods is admissible. The Tribunal relied on its previous rulings and allowed the appeals, setting aside the impugned Orders-in-Original and Orders-in-Appeal. The judgment emphasized the importance of repair and maintenance activities for the manufacturing process and deemed the Cenvat credit eligible in this context.

The judgment showcases the importance of legal precedents and interpretations in determining the admissibility of Cenvat credit for specific inputs used in repair and maintenance activities. It underscores the significance of upholding consistency in decisions across similar cases and highlights the Tribunal's role in providing clarity on such matters within the realm of indirect taxation laws.