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2023 (7) TMI 388 - HC - Central ExciseCENVAT Credit - capital goods or not - Oxygen Gas Acetylene Gas used for repairs and maintenance of plant and machinery - can be treated to be components/spares and/or accessories of welding machine falling under Heading 84.68 of Chapter 84 of the Tariff or not - HELD THAT - This Court, in Hindustan Zinc Ltd. s case 2008 (7) TMI 55 - RAJASTHAN HIGH COURT , while considering the question of law, whether welding electrodes used for repairing and maintenance of plant Machinery both as capital goods as well as inputs, has answered the same in favour of the assessee and against the revenue. It is deemed appropriate to allow these appeal in terms of the judgment passed by the Division Bench of this Court in Hindustan Zine Ltd. s case - application disposed off.
Issues involved: Interpretation of eligibility for CENVAT credit on Oxygen Gas & Acetylene Gas used for repairs and maintenance of plant and machinery under Rule 2(a)(A)(iii) of the CENVAT Rules, 2004.
Summary: The matter involved the consideration of an application by the appellant to decide the appeal based on a previous judgment by the Division Bench of the Court. The appeal questioned whether Oxygen Gas & Acetylene Gas used for repairs and maintenance of plant and machinery can be considered components/spares of welding machines eligible for CENVAT Credit. The appellant argued that a previous judgment had already answered this question in favor of the assessee. The revenue, however, argued that the issue was still pending before the Supreme Court due to related appeals. In the previous case of Hindustan Zinc Ltd., the Court had considered a similar question regarding welding electrodes and their eligibility for CENVAT credit. The Court had made detailed observations based on relevant legal precedents and had ruled in favor of the assessee. The Court emphasized the liberal interpretation of the term "capital goods" and concluded that the Oxygen Gas and Acetylene Gas could be considered accessories of welding machines and thus eligible for CENVAT Credit. The revenue did not dispute this fact, and the Court decided to allow the appeal based on the previous judgment in Hindustan Zinc Ltd.'s case. Therefore, the Court disposed of the application and allowed the appeal in favor of the assessee, citing the judgment in Hindustan Zinc Ltd.'s case as the basis for its decision.
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