2013 (8) TMI 263 - AT - Central Excise

Cenvat credit of excise duty paid on welding electrodes is admissible to the assesse as Cenvat Credit Relying upon the decision of Chhattisgarh High Court in case of Ambuja Cement Eastern Ltd. Vs. CCE 2010 (4) TMI 429 - CHHAITISGARH HIGH COURT , and the judgement of Hon ble High Court of Karnataka High Court in case of Alfred Herbert (India) Ltd. 2010 (4) TMI 424 - KARNATAKA HIGH COURT , it has been held that the Cenvat credit in the duty paid on the welding electrodes is admissible to the assessee Decided in favor of Assessee.

Summary

Issues:
Admissibility of Cenvat credit on welding electrodes.

Analysis:
The appeal was filed by M/s Oudh Sugar Mills Ltd. against the Order-in-Appeal passed by the Commissioner of Central Excise (Appeals). The dispute revolved around the admissibility of Cenvat credit amounting to Rs.2,61,040/- on welding electrodes under Chapter 83 of the Central Excise Tariff for the period July 2008 to April 2009. The department contended that welding electrodes did not qualify as inputs for Cenvat credit. A Show Cause Notice was issued to demand the credit along with interest and penalty. The Assistant Commissioner confirmed the demand and imposed penalties, which were partially upheld by the Commissioner of Central Excise (Appeals). The appellant challenged this decision before the CESTAT.

The key issue before the Tribunal was whether the Cenvat credit on excise duty paid on welding electrodes was admissible to the assessee. The Tribunal referred to its previous Order dated 28th March 2013, where it had settled the issue of availment of Cenvat credit on welding electrodes. Citing decisions from various High Courts, including Chhattisgarh, Rajasthan, and Karnataka, the Tribunal held that the Cenvat credit on duty paid on welding electrodes was indeed admissible to the assessee. Relying on these precedents, the Tribunal concluded that the appellant was entitled to avail the Cenvat credit on welding electrodes. Consequently, the order-in-appeal was set aside, and the appeal filed by the appellant was allowed.

In conclusion, the Tribunal's judgment clarified the admissibility of Cenvat credit on welding electrodes, aligning with previous decisions and legal precedents. The appellant was granted the right to avail the Cenvat credit on duty paid on welding electrodes, overturning the previous orders and ruling in favor of the appellant.