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TMI Blog2013 (11) TMI 879X X X X Extracts X X X X X X X X Extracts X X X X ..... ice for recovery of Cenvat credit amounting to Rs. 4,00,168/- alongwith interest and imposition of penalty, which was adjudicated by the Assistant Commissioner vide order-in-original dated 27/1/11 by which the above-mentioned Cenvat credit demand was confirmed alongwith interest and penalty of equal amount was imposed. However, on appeal being filed to Commissioner (Appeals) vide order-in-appeal dated 29/4/11, set aside the Assistant Commissioners order against which Revenue is in appeal. 2. Heard both the sides. 3. Shri M.S. Negi, the learned DR, assailed the impugned order by reiterating the grounds of appeal and citing the judgment of Hon'ble Andhra Pradesh High Court in the case of Shree Rayalaseema Hi-Strength Hypo Ltd. vs. CCE, Tir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat welding electrodes used for repair and maintenance of the plant and machinery would be eligible for Cenvat credit. In this regard para 5 to 8 are reproduced below :- 5. I have considered the submissions from both the sides and perused the records. There is no dispute that the welding electrodes in question, have been used for repair & maintenance of plant and machinery. It is also not disputed that regular repair & maintenance of plant and machinery of a Sugar Mills is an essential activity. 6. The definition of 'input' during the period of dispute, as given in Rule 2 (k) of the Cenvat Credit Rules'2004, covered- all goods except Light Diesel Oil, HSD and Motor Spirit commonly known as petrol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cles were used merely for removing ore from to the mines to the factory, and finished goods from the factory to the place of storage. Spare parts and accessories required for effective operation of those vehicles were also held to fall within Rule 13, See Indian Copper Corporation Ltd. Vs. Commissioner of Commercial Taxes, Bihar CA No. 1021 of 1969 dt. 19.10.1964. Thus, in term of the above judgment of the Apex Court the goods used in an activity, without which manufacturing operations, though theoretically possible, are not commercially feasible, have to be treated as, used in the manufacture of the final products. 6.1 When the Apex Court has interpreted the expression used in manufacture in the above manner, the scope of the expression ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Tribunal in the case of M/s. Steel Authority of India Ltd. Vs. Commissioner of Central Excise, Ranchi reported in 2008(222) ELT-233 (Tri. Kolkata) the SLP filed by SAIL against which has been dismissed by the Apex Court and has observed that mere dismissal of SLP without giving any reason does not lay down any law. Hon'ble Rajasthan High Court in case of Hindustan Zinc Ltd. reported in 2008(228) ELT-517 (Raj.) and Hon'ble Karnataka High Court in case of Alfred Herbert (India) Ltd. reported in 2010(257) ELT-29 (Kar) has also held that the goods used for repair & maintenance of plant and machinery are eligible for Cenvat Credit. 8. Though Apex Court in case of Grasim Industries Ltd. reported in 2011 (273) ELT- 10 (SC) has held that repair ..... X X X X Extracts X X X X X X X X Extracts X X X X
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