9911796707
TMI Blog2014 (9) TMI 588X X X X Extracts X X X X X X X X Extracts X X X X ..... peal. 3. Heard both the sides. The Ld. Advocate on behalf of the appellant submits that this Tribunals Final order No. 1300/2011 dated 13.12.2011, passed in their own case disallowing credit on welding electrodes is stayed by the Hon'ble Madras High Court vide interim Order in CMA 1236/2012 dated 11.06.2012 (MP.No. 1/2012). He submits that in their own case, this Tribunal has earlier allowed cenvat credit on welding electrodes vide Final Order No. 721/2010 dated 01.07.2010. The welding electrodes are used in their manufacturing plant for repairs and maintenance of plant and machinery for the manufacture of excisable goods. He relied upon the following High Courts and Tribunals various case laws:- 1. CCE Vs. India Cements Ltd. 2009 (238) ELT 411 (Mad.) 2. Kisan Co-operative Sugar Factory Ltd. Vs. CCE, Meerut 2013 (296) ELT 523 (Tri.-Del.) 3. Mangalam Cements Ltd. Vs. CCE (ST), Jaipur 2014-TIOL-604-CESTAT-DEL 4. Oswal Overseas Ltd. Vs. CCE, Meerut 2010 (254) ELT 338 (Tri.-Del.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and maintenance of plant and machineries. The Tribunal in 2011 order relied the Tribunal Order in the case of SAIL Vs. CCE, Ranchi (supra), on the ground that the appeal was against this order was dismissed by the Hon'ble Supreme Court. The Hon'ble Madras High Court had stayed the said Tribunals Order vide Hon'ble Madras High Court interim Order in CMA 1236/2012 dated 11.06.2012 (MP.No. 1/2012). 6. It is pertinent to state that the issue of admissibility of cenvat credit on the welding electrodes used for repair and maintenance of plant and machinery has been agitated before the Hon'ble Apex Court and various High Courts and Tribunals and held in favour as well as against the assessees. As regards the Tribunal's Order No. 1300/2011 dated 13.12.2011, where in the appellants appeal was dismissed by relying the Tribunal's decision in the case of SAIL Vs. CCE, Ranchi (supra). The said decision has been clearly distinguished by the Hon'ble High Court of Chhattisgarh in the case of Ambuja Cement Eastern Ltd. (supra). 7. I find that the Hon'ble High Court of Madras in the case of CCE, Trichy Vs. India Cements Ltd. (supra) on the identical issue has upheld this Tribunals order and the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory Ltd. Vs. CCE, Meerut (supra), the issue has been discussed at length by considering the rulings of various High Courts and Tribunal, and allowed the appeal. The relevant portion of the said decision is reproduced as under:- 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 used in or in relation to manufacture of final products whether directly or indirectly and whether contained in the final product or not and includes'. The expression 'used in or in relation to manufacture of final products whether directly or indirectly' is obviously wider in scope than expression 'used in the manufacture of', as the expression 'in or in relation to' expands scope of the expression 'used in the manufacture of'. Apex Court in the case of J.K. Cotton Spinning & Weaving Mills Co. Ltd. v. Sales Tax Officer, Kanpur reported in 1997 (91) E.L.T. 34 (S.C.) while interpreting the scope of the expression 'used in the manufacture of' in Section 8(3)(b) of the Central Sales Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s case that manufacturing activity is commercially feasible with malfunctioning machinery, and leaking pipes, tubes and tanks. Therefore repair and maintenance of plant and machinery, though by itself not a manufacturing activity, has to be treated as an activity in relation to manufacture and inputs used in repair & maintenance would have to be treated as goods used in relation to manufacture. 7. Moreover I find that Hon'ble Chhattisgarh High Court in case of Ambuja Cement Eastern Ltd. (supra) has held that welding electrodes used for repair and maintenance of plant and machinery eligible for Cenvat credit. In this case Hon'ble Chhattisgarh High Court has also discussed the judgment of Tribunal in the case of M/s. Steel Authority of India Ltd. v. Commissioner of Central Excise, Ranchi reported in 2008 (222) E.L.T. 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) E.L.T. 517 (Raj.) and Hon'ble Karnataka High Court in case of Alfred Herbert (India) Ltd. reported i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
