2015 (1) TMI 589

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..... Court waives the pre-deposit of duty along with interest and penalty - Stay granted.
Shri Pradip Kumar Das and Shri R. Periasami, JJ. For the Appellant : Shri Raghavan Ramabadran, Adv. For the Respondent : Shri M. Rammohan, DC(AR) ORDER Per Pradip Kumar Das: The applicant is engaged in the manufacture of Cement and Clinkers, availed Cenvat credit on welding electrodes, amounting to ₹ 30,64,998, during the period Aug.'05 to May,'10, which was denied on the ground that welding electrodes were used for repair and maintenance services and not used for the manufacture of Cement/Clinker. 2. The learned Authorised Representative relied upon the decision of the Hon'ble Andhra Pradesh High Court in the case of Sree Rayalseema Hi-Stre .....

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..... w of the judgements of Hon'ble Chhattisgarh High Court in the case of Ambuja Cement Eastern Ltd. (supra), Hon'ble Rajasthan High Court in the case of Hindustan Zinc Ltd. reported at 2007 (214) ELT 510 (Raj.) as affirmed by the Apex Court vide judgement reported at 2007 (214) ELT A115 (SC) and of Hon'ble Karnataka High Court in the case of Alfred Herbert (India) Ltd. reported in 2010 (257) ELT 29 (Kar.) wherein it has been held that the goods used for repair and maintenance of plant and machinery are eligible for cenvat credit as "inputs". Though Hon'ble Andhra Pradesh High Court in the case of Sree Rayalaseema Hi-strength Hypo Ltd. Vs CC & CE Tirupati reported at 2012 (278) ELT 167 (A.P.) has taken a contrary view .....

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..... the manufacture of final product, though theoretically possible, is not commercially feasible, would have to be treated as having nexus with the manufacture of final product and the inputs used in such activity would be eligible for cenvat credit. Needless to say that smooth manufacturing operations are not possible with malfunctioning parts or components or with leaking pipes, tubes and tanks. Regular repair and maintenance is a must for commercially feasible manufacturing operations. The eligibility for cenvat credit of an input or input service used in an activity is not dependent upon whether that activity amounts to manufacture of the final product but whether the activity has nexus with manufacture of the final product in the said pla .....

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