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TMI Blog2009 (1) TMI 711X X X X Extracts X X X X X X X X Extracts X X X X ..... and aluminium products. M.S. Rounds are used for repair of Anode studs which get eroded during the electrolysis process and pig iron is used for repair of shallow rectangular steel tanks. The Department was of the view that since these items are used only for repair and maintenance of the plant and machinery and since they are not covered by the definition of capital goods, the same are not eligible for Cenvat credit either as inputs or as capital goods. 2. Heard both the sides. 3. Shri S.K. Bhaskar, the ld. DR reiterating the grounds of appeal pleaded that the M.S. Rounds and pig iron are not eligible for either Cenvat capital goods Cenvat credit or input credit as they are neither used in or in relation to the manufacture of finished ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ible for Cenvat credit. The learned D.R., therefore, pleaded that pig Iron and M.S. Rounds used in the present case for repair and maintenance of plant and machinery are neither input eligible for Cenvat credit or the same are capital goods eligible for capital goods Cenvat credit and therefore, the Commissioner (Appeals) has wrongly allowed Cenvat credit in respect of these items. 5. Shri Ravi Raghavan, ld. Counsel for the respondent pleaded that the M.S. Rounds and pig iron, used for repair and maintenance of plant and machinery are eligible for Cenvat credit. In this regard, he placed reliance on the judgment of Hon ble Rajasthan High Court in the case of Union of India v. Hindustan Zinc Ltd. reported in 2007 (214) E.L.T. 510 where it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or not. While the Tribunal in the case of Jaypee Rewa Plant (supra) and Vikram Ispat (supra) in respect of use of welding electrodes and oxygen gases for repairs and maintenance of the plant and machinery has held that the same are not eligible for Cenvat credit as inputs, I find that Hon ble Rajasthan High Court in the case of Union of India v. Hindustan Zinc Ltd. (supra) has held that MS/SS plates used in the workshop for repairs and maintenance of the machinery are eligible for capital goods Cenvat credit as these goods are necessary for running of the plant and machinery. The SLP filed by the Govt. against this judgment of the Hon ble Rajasthan High Court has been dismissed by the Hon ble Supreme Court. In view of this, I hold that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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