2009 (5) TMI 281 - AT - Central Excise

Denial of credit on Welding Electrodes, Asbestos packing, Angle, Shapes, HDPE pipes, Sections and Quick Setting Cement. - Welding Electrodes were used for repair and maintenance of plant and machinery and hard facing of various parts of machinery. Hon ble Rajasthan High Court in the case of Hindustan Zinc Ltd. v. UOI held that Welding Electrodes used for repair and maintenance of plant and machinery are eligible for Cenvat credit. Following that decision, credit on welding electrodes is allowed - Asbestos Packing used for preventing leakage in pipes connected with flanges to transfer cane juice from one station to another in processing plant in sugar mill is eligible for Cenvat credit. Hence, credit on Asbestos packing is admissible Tribunal s decision in the case of KCP Sugar & Industries Ltd. v. CCE, Guntur, followed appellant contend is that Angle and Shapes Section, are actually seamless pipes, flange, elbow and pipe support clamps, etc. covered within the definition of pipe, tubes and fitting thereof. - appellants have not submitted any evidence in support of their contention. So, it is required to be examined by the original authority. denial of credit on these items is set aside and case is remanded to original authority - Quick Setting Cement are Refractory material used for boiler Cement covered under Refractory and Refractory material under Rule 2(a) of Cenvat Credit Rules Credit admissible on Quick setting cement - Tribunal decision in the case of CCE, Bangalore v. Amitronics (P) Ltd., followed

Summary

Issues:
Appeal against denial of credit on Welding Electrodes, Asbestos Packing, Angle, Shapes, HDPE pipes, Sections, and Quick Setting Cement.

Welding Electrodes:
The Tribunal referred to a case where it was held that Welding Electrodes used for repair and maintenance of plant and machinery are eligible for Cenvat credit. Following this precedent, the denial of credit on Welding Electrodes was deemed unsustainable.

Asbestos Packing:
The Tribunal noted that Asbestos packing was used as essential material for jointing purposes in various machinery in a sugar mill plant. Citing a previous case, it was established that Asbestos packing used for preventing leakage in pipes is eligible for Cenvat credit, hence the credit on Asbestos packing was allowed.

Angle and Shapes Section:
The appellants argued that the items in question were wrongly classified and should be considered as seamless pipes, flanges, elbows, and pipe support clamps falling under "pipe, tubes and fitting thereof." However, as no evidence was submitted to support this claim, the matter was remanded to the original authority for further examination.

Quick Setting Cement:
The appellants contended that Quick Setting Cement was used as Refractory material for boilers. The Tribunal referenced a case where it was established that certain materials, including Quick Setting Cement, could be considered as Refractory material. As the definition of capital goods did not specify a particular heading, the credit on Quick Setting Cement was allowed as it was used as Refractory material.

In conclusion, the Tribunal allowed credit on Welding Electrodes, Asbestos Packing, and Quick Setting Cement. The denial of credit on Angle, Shapes, and sections was set aside for further examination by the original authority with a directive for the appellants to produce relevant documents. Both appeals were disposed of accordingly.