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TMI Blog2009 (9) TMI 788X X X X Extracts X X X X X X X X Extracts X X X X ..... stan Zinc Ltd. v. UOI reported in 2008 (228) E.L.T. 517 (Raj.) has held that welding electrodes used for repair and maintenance of plant and machinery would be eligible for Cenvat credit as input as well as as capital goods; that in this case, Hon'ble Rajasthan High Court has over-ruled the Larger Bench judgment of the Tribunal in the case of Jaypee Rewa Plant v. CCE reported in 2003 (159) E.L.T. 553 wherein the Larger Bench of the Tribunal had held that the welding electrodes are not eligible for Cenvat credit as inputs; that in any case, the eligibility of welding electrodes for Cenvat credit as capital goods had not been considered by the Larger Bench of the Tribunal in the case of Jaypee Rewa Plant; that the welding electrodes are used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing on all the Courts and the Tribunal and that this judgment of Hon'ble Supreme Court had not been considered by the Hon'ble Rajasthan High Court in the case of Hindustan Zinc Ltd. (supra). 3. I have carefully considered the submissions from both the sides and perused the records. The welding electrodes are used for repair and maintenance of the cement plant and by attaching the same with welding machine or in other words, as part of the welding machine. The welding machine is classifiable under heading 84.68 of the tariff and hence the same is covered by Clause (i) of Rule 2(a) of Cenvat Credit Rules, 2004 and since the welding electrodes are part of the welding machine, the same would also be covered by Clause (iii) of Rule 2(a) of Cenv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of the case, therefore, though it cannot be said that the decision of the Hon'ble Rajasthan High Court has been over-ruled by the Apex Court while dismissing the SLP in SAIL's case, fact remains that the Apex Court refused to interfere in the said decision for reason disclosed in the order dismissing the SLP, and hence bearing in mind the ruling of the Apex Court in the case of Kunhayammed read with in Dhanwanti Devi case, it would be binding upon the Tribunal. Having said so, we hasten to clarify that the decision of the Hon'ble Rajasthan High Court would undoubtedly be binding on the parties to the said case. However, the said decision would have to be read alongwith the order of the Apex Court in the SLP in SAIL's matter. Undoubtedly, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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