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2019 (2) TMI 1099 - HC - Central ExciseCENVAT Credit - input - Welding Electrodes - Held that - Reliance placed in the case of COMMR. OF CUS., C. EX. & S.T., BILASPUR VERSUS SINGHAL ENTERPRISES PVT. LTD. 2017 (7) TMI 1112 - CHHATTISGARH HIGH COURT , where it was held that credit on welding electrodes must be allowed - appeal allowed - decided in favor of appellant.
Issues:
- Benefit of Cenvat Credit on Welding Electrodes as an input for maintenance and repair of plant and machinery. Analysis: 1. The appeal was filed by the Appellant-Company against the order passed by the Customs, Excise & Service Tax Appellate Tribunal, Principal Bench, New Delhi. The Tribunal had dismissed the appeal, refusing to give the benefit of Cenvat Credit on Welding Electrodes as an input for maintenance and repair of plant and machinery. The Tribunal's decision was based on earlier adjudications, but the law has since evolved and crystallized in subsequent decisions. 2. The Tribunal itself, in a different case Commissioner of Customs, Central Excise Raipur v. M/s. Jindal Steel & Power Ltd., observed that the issue of claiming Cenvat Credit on Welding Electrodes has been settled by various decisions. High Courts, including the High Court of Chhattisgarh and the High Court of Rajasthan, have allowed such credit, considering welding electrodes as "Inputs" under the Cenvat Credit Rules. The Tribunal, in light of these precedents, held that appellants are entitled to the credit on welding electrodes as inputs. 3. The High Court considered the law as it stands today and noted that a Division Bench of the High Court had previously ruled in favor of allowing Cenvat Credit on welding electrodes in a similar case. Therefore, the High Court set aside the orders passed by the Tribunal, the Commissioner, Central Excise & Customs (Appeals-I), and the Assistant Commissioner, Central Excise Division, disallowing the Cenvat credit. Consequently, the appeal by the Appellant-Company was allowed, granting them the benefit of Cenvat Credit on welding electrodes used for maintenance and repair purposes.
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