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TMI Blog2013 (11) TMI 981X X X X Extracts X X X X X X X X Extracts X X X X ..... n of sugar machinery. The Cenvat credit of Rs. 71,090/- was taken in respect of welding electrodes and credit of Rs. 99,342/- was taken in respect of steel items during the period from January 2009 to August 2009. The department being of the view that these items are not covered by the definition of input or capital goods, initiated proceedings for recovery of the Cenvat credit alongwith interest and imposition of penalty which resulted in issue of order-in-original dated 31/3/10 by which the Assistant Commissioner confirmed the above-mentioned Cenvat credit demand alongwith interest and imposed penalty of equal amount on the appellant. This order of the Assistant Commissioner was upheld by CCE (Appeals) vide order-in-appeal dated 22/10/10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) E.L.T. 517 (Raj.), judgment of Hon'ble Chhattisgarh High Court in the case of Ambuja Cements Eastern Ltd. vs. CCE, Raipur reported in 2010 (256) E.L.T. 690 (Chhattisgarh) and judgment of Hon'ble Karnataka High Court in the case of CCE, Bangalore- I vs. Alfred Herbert (India) Ltd. reported in 2010 (257) E.L.T. 29 (Kar.), wherein it has been held inputs used for repair and maintenance of the plant and machinery are eligible for Cenvat credit, that as regards the steel items namely MS Steel, MS Plates and MS Angles, the same have either been used for fabrication of various items of sugar mill machinery or for repair and maintenance of sugar mill machinery, as has been observed by the Assistant Commissioner in his order-in-original as well as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order by reiterating the findings of the Commissioner (Appeals) and cited the judgment of Hon'ble Andhra Pradesh High Court in the case of Sree Rayalaseema Hi-Strength Hypo Ltd. vs. CCE, Tirupati reported in 2012 (278) E.L.T. 167 (A.P.), wherein it was held that welding electrodes used for repair and maintenance of the plant and machinery are not eligible for Cenvat credit. 5. I have considered the submissions from both the sides and perused the records. 6. So far as eligibility for Cenvat credit of the welding electrodes used for repair and machinery of the plant and machinery is concerned, this issue stands decided by the judgment of three High Courts, as mentioned above - judgment of Hon'ble Rajasthan High Court in the case of Hindusta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above manner, the scope of the expression used in or in relation to manufacture, whether directly or indirectly' in the definition of 'input' in Rule 2 (k) of the Cenvat Credit Rules, 2004 would be much wider. Moreover, Hon'ble Calcutta High Court in the case of Singh Alloys & Steel Ltd. vs. Assistant Collector of Central Excise reported in 1993 (66) E.L.T. 594 (Cal.) has held that the definition of 'input' does not depend on what ought to be used but what is commercially expedient to use and expression 'in relation to used' in Rule 57A has wide connotation. Therefore, for determining the eligibility of an item for Cenvat credit, what is relevant is as to whether the activity in which that item is required has nexus with manufacture or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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