2023 (8) TMI 703 - AT - Central Excise

CENVAT Credit - inputs - Welding Electrodes - Wire FLR - Filler Wires - Welding Wire - Wire Rope - material used for railway line and capital goods viz M.S. Gratings / G.I. Coated Gratings - HELD THAT - These issues are no longer res integra as this Tribunal has already decided these issue in NAYARA ENERGY LIMITED VERSUS C.C.E. S.T. RAJKOT 2021 (8) TMI 644 - CESTAT AHMEDABAD and A/10084/2020 dated. 14.01.2020 in the Appellant s own case 2020 (2) TMI 749 - CESTAT AHMEDABAD wherein, considering various judgments on similar issue held that On every item, this Tribunal has considered the admissibility of the cenvat credit and in various judgements, it was held that the credit is admissible on the goods in question. Thus, the appellant are entitled for the Cenvat credit on the said goods - appeal allowed.

Summary

Issues involved:
The issues involved in this case are whether the appellant is entitled to Cenvat credit on various inputs and capital goods, including welding electrodes, wire FLR, filler wires, welding wire, wire rope, material used for railway lines, and M.S. Gratings/G.I. Coated Gratings.

Welding Electrodes, Wire FLR, Filler Wires, Welding Wire, Wire Rope:
The Commissioner denied Cenvat credit on these items, stating they were not used 'in or in relation to the manufacture of final products' as they were not integrally connected with the manufacturing process of petroleum products. The appellant argued that these items were essential for repair and maintenance of plant and machinery, crucial for smooth manufacturing operations. They cited various judgments supporting their claim.

Material Used in Laying of Rail Lines:
The Commissioner disallowed Cenvat credit on material used for laying rail lines outside the factory premises. The appellant contended that the railway track was directly connected to the manufacture of final products as it was used exclusively for handling materials within the factory premises. They supported their argument with relevant judgments.

M.S. Gratings/G.I. Coated Gratings:
The Commissioner rejected Cenvat credit on these items, stating they could not be classified as components, spares, or accessories of plant and machinery. The appellant argued that M.S. Gratings were essential accessories for supporting and holding plant units, without which the processing unit could not function. They relied on various judgments to support their claim.

Final Decision:
The Tribunal, considering previous judgments and the appellant's arguments, held that all the goods in question were used in or in relation to the manufacture of final products. They found that the appellant was entitled to Cenvat credit on these goods and set aside the impugned order, allowing the appeal with consequential relief, if any, as per law.