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TMI Blog2011 (2) TMI 601X X X X Extracts X X X X X X X X Extracts X X X X ..... ents Eastern Ltd. r(2010 -TMI - 77888 - CHHAITISGARH HIGH COURT) - E/1218 of 2009-SM(BR) - - - Dated:- 3-2-2011 - Hon'ble Shri Rakesh Kumar, Member (Technical) Appearance: Rep. by Shri R.L. Prabhakar, Co. Secretary for the appellant/Deptt. Rep. by Shri R.K. Gupta, SDR for the respondent. Per Rakesh Kumar The appellants are paper mill engaged in the manufacture of semi-kraft paper chargeable to central excise duty. They availed Cenvat credit of duty paid on inputs and capital goods as per the provisions of Cenvat Credit Rules. The dispute in this case is as to whether the following five items are eligible for Cenvat Credit vide as capital goods or as inputs (a) Front Loader - This item has been received on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been filed. 3. Heard both the sides. 3.1 Shri R.L. Prabhakar, Co. Secretary representing the appellant, pleaded that Front and Loader are used as part of the handling equipment falling under Heading 84.27 and 84.28 of the Tariff and hence the same are covered by the definition of capital goods; that Loctite is a gum which is used for fabrication of boiler and hence it has to be treated as input used for the manufacture of the capital goods which are used in the factory, that Welding Electrodes have been used for repair and maintenance of the plant and machinery and in terms of the Hon ble Chattisgarh High Court s judgement in the case of Ambuja Cements Eastern Ltd. reported in 2010 (256) ELT 690 (Chattisgarh) and the Hon ble Rajasth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g No.29213090 are not covered by definition of capital goods and the same cannot be treated as inputs as the appellants have not shown as to how they are used in relation to the manufacture of the final products, that welding electrodes used as repair and maintenance of the plant and machinery are not eligible for Cenvat credit as activity of the repair and maintenance is not part of the manufacture and that Item - Champion Style falling under Heading No.6812 is not covered by the definition of the capital goods and the appellants have also not shown as to with which machinery the same is used, and that in view of this, there is no infirmity in the impugned order. 4. I have carefully considered the submissions from both the sides and pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tenance of the plant and machinery, in terms of the judgement of the Rajasthan High Court in the case of M/s. Hindustan Zinc Ltd. (supra) and of Chattisgarh High Court in the case of Ambuja Cements Eastern Ltd. (supra), the Welding Electrodes are used in the repair and maintenance of the plant and machinery are eligible for cenvat credit. But in the impugned order, the Commissioner (Appeals) has not discussed as to how the ratio of these judgements is not applicable to this case. 6. In view of this, the impugned order being a non-speaking order, is set aside and the matter is remanded to the Commissioner (Appeals) for de novo decision. In the course of de novo proceedings, the Commissioner (Appeals) should determine the eligibility of f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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