2018 (3) TMI 828 - AT - Central Excise

CENVAT credit - various steel items and welding electrodes which has been used for fabrication/repair and maintenance of plant and machinery or not - Held that - reliance placed in the decision in the case of M/s Singhal Enterprises Pvt. Ltd. vs. Commissioner Customs & Central Excise, Raipur 2016 (9) TMI 682 - CESTAT NEW DELHI , wherein this Tribunal held that if the steel items has been used for fabrication of various steel items although and used in manufacture of excisable goods the assessee is entitled to avail Cenvat Credit - on the steel items the appellant is entitled to avail Cenvat Credit. In the case of Ambuja Cements Eastern Ltd. vs. CCE 2010 (4) TMI 429 - CHHAITISGARH HIGH COURT , the Hon ble Chattisgarh High Court held that the welding electrodes used for repair and maintenance of plant and machinery is entitled to avail Cenvat Credit. Appeal allowed - decided in favor of appellant.

Summary

Issues involved:
Whether the appellant is entitled to avail Cenvat Credit on steel items used for fabrication/repair and maintenance of plant and machinery?
Whether the appellant is entitled to avail Cenvat Credit on welding electrodes used for repair and maintenance of plant and machinery?

Analysis:

Issue 1: Cenvat Credit on steel items for fabrication of plant and machinery
The appellant claimed Cenvat Credit on steel items used for fabrication of plant and machinery, which were further utilized in manufacturing excisable goods. The Tribunal referred to the case of M/s Singhal Enterprises Pvt. Ltd. vs. Commissioner Customs & Central Excise, Raipur, where it was held that if steel items are used for fabrication and in the manufacture of excisable goods, the assessee is entitled to avail Cenvat Credit. Relying on this precedent, the Tribunal concluded that the appellant is indeed entitled to avail Cenvat Credit on the steel items used for fabrication purposes.

Issue 2: Cenvat Credit on welding electrodes for repair and maintenance
Regarding the welding electrodes used for repair and maintenance of plant and machinery, the Tribunal cited the case of Ambuja Cements Eastern Ltd. vs. CCE, where the Chattisgarh High Court ruled that welding electrodes used for such purposes are eligible for Cenvat Credit. Based on this legal precedent, the Tribunal determined that the appellant is entitled to avail Cenvat Credit on welding electrodes utilized for the repair and maintenance of plant and machinery.

In conclusion, the Tribunal set aside the impugned order and allowed the appeal, granting the appellant the entitlement to Cenvat Credit on both the steel items used for fabrication of plant and machinery and the welding electrodes used for repair and maintenance. The decision was made in accordance with the legal principles established in the referenced cases, ensuring the appellant's right to claim the Cenvat Credit on the specified items.