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TMI Blog2008 (11) TMI 528X X X X Extracts X X X X X X X X Extracts X X X X ..... der]. 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 disallow irregu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : (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 definition of capital goods at the relevant point of time i.e January, 1996 reads as under : Capital goods mean ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted position in the show cause notice that these items are parts of material handling equipment/electrostatic precipitator. It is not the case of the Department that, material handling equipment/electrostatic precipitator are not machines, machinery, plant equipment etc. used for producing or processing any goods or for bringing about any change in any substance for the manufacture of final pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her items used for repair and maintenance of anode studs of electrolytic cells, cannot be used directly as capital goods or parts/spares/accessories of the capital goods. However, this contention is not tenable - in the case of Hindustan Zinc Ltd. v. Union of India, 2008 (228) E.L.T. 517 (Raj.), the Hon ble Rajasthan High Court has held that Cenvat credit is admissible on welding electrodes used f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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