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TMI Blog2015 (6) TMI 821X X X X Extracts X X X X X X X X Extracts X X X X ..... iew that CENVAT credit is admissible - Decided against Revenue. - E/2758/2011-SM - Final Order No. 22381/2014 - Dated:- 12-12-2014 - B S V Murthy, Member (T),J. For the Appellant : Mr Pakshi Rajan, AR For the Respondent : Mr B N Gururaj, Adv. ORDER Per: B S V Murthy: The appellant is a manufacturer of High Carbon Ferro Chrome. The appellant availed CENVAT credit on MS Plates, Sheets, Angles, Rounds etc. during the period from June 2005 to November 2006. It was held that credit is not admissible. This is second round of litigation and in the first round the matter had been remanded with a direction to consider the issue in the light of decision of this Tribunal in the case of M/s. Vandana Global Ltd. Vs. CCE, Raipur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a view that credit of central excise duty would be available in respect of MS Bars/ Plates etc. used in workshop meant for repairs and maintenance of machinery which are used for manufacture of final products. The Tribunal had also relied upon the decision of the Hon'ble High Court in the case of Hindustan Zinc Ltd. [2007 (214) E.L.T. 510 (Raj.)] to take a view that MS Plates, Sheets etc. used in the workshop for repair are eligible for CENVAT credit. This Tribunal also relied upon paragraph 5 of the decision in the case of Panipat Co-operative Sugar Mills Ltd. relied upon by the learned counsel to come to the conclusion that credit is admissible. Paragraph 5 is reproduced for better appreciation: 5. I have considered the submission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nance are not eligible for cenvat credit as the activity of repair and maintenance is distinct from manufacture, in my view when three High Courts as mentioned above have held that the items used for repair and maintenance of plant and machinery are eligible for Cenvat credit it is this view which has to be adopted. Moreover, for permitting cenvat credit what is relevant is as to whether the use of the item has nexus with manufacture and whether without that item manufacture is commercially possible. Since repair and maintenance is an activity which is essential for smooth manufacturing operations and without regular repair and maintenance, manufacturing activity is not commercially feasible, the inputs used for repair and maintenance of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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