2008 (11) TMI 528

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..... espondent. [Order]. - The respondents herein are engaged in the manufacture of aluminium products falling under Chapter 76 of the Central Excise Tariff Act, 1985. They were availing facility of Cenvat credit on duty paid inputs and capital goods under Rule 57-Q read with Rule 57-T of the erstwhile Central Excise Rules, 1944. A show cause notice dated 31-7-1996 was issued to them proposing to di .....

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..... llowing items : (i)      Bucket elevator chain; (ii)    Bucket for elevator; (iii)   Aluminium Wire; (iv)   Brass Wire; (v)     M.S. Forged Round; (vi)   M.S. Round; (vii)  Forged Steel Round; (viii) Hot Dia Steel; and (ix)   Welding Electrodes 2. I have heard both sides. The def .....

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..... bsp;        ................" The show cause notice proceeded on the basis that Bucket elevator chain and Bucket for elevator are parts of handling equipment/parts of electrostatic precipitator. According to the Revenue, they do not play any role in the functioning of any machinery of which they had claimed to be parts. However, it is an admitted position i .....

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..... machine. 4. 5. M.S. Forged Round M.S. Round For repairing the anode stands of electrolytic cell 6. Forged Steel Round   7. Hot Dia Steel For making dia for extrusion 4. According to the Revenue, electrodes used for welding purposes and other items used for repair and maintenance of anode studs of electrolytic cells, cannot be used directly as capital goods or parts/spares/ac .....

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..... t, there is no substance in the Department's plea that items used for such purpose are not eligible to Cenvat/Modvat credit. 4. In the light of the above discussion, I hold that Bucket elevator chain and Bucket for elevator are eligible to credit as parts of material handling equipment and the other items which are used for repair and maintenance of machinery are eligible to credit in the li .....

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