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TMI Blog2015 (10) TMI 621X X X X Extracts X X X X X X X X Extracts X X X X ..... the ruling of the Hon'ble Apex Court in the case of Steel Authority of India Ltd. Vs. Commissioner 2008 (229) ELTA127 (SC) observed that the Hon'ble Supreme Court has upheld the Tribunal's decision in the case of JaypeeRewa Plant Vs. Commissioner of Central Excise, Raipur 2003 (159) ELT 553 (Tri-LB), wherein it was held that 'welding material used for repairs and maintenance of machinery are not eligible for CENVAT Credit as they are not used co-extensively with process of manufacture of final product' and accordingly, it was held that the appellant is not entitled to CENVAT Credit on welding electrodes used in the maintenance of capital goods and machinery in plants. Being aggrieved, the appellant assessee is in appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ems used for construction of factory shed, building or laying of foundation or making of structures for support of capital goods;" 5. The learned Counsel for the appellant urges that from a plain reading of the definition, inasmuch as it provides that input means all goods used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not qualifies as inputs. He further stated that this is evident, as the definition states that input includes items like, lubricating oils, greases, cutting oils, coolants, accessories of the final products cleared along with the final product, goods used as paint, or as packing material, or as fuel, or for generation of electricity or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der: - 'They need not be ingredients or commodities used in the processes, nor must they be directly and actually needed for 'turning out or the creation of goods.' The Hon'ble High Court further observed that the Hon'ble Supreme Court even went to the extent of holding, that use of electrical equipments, like lighting, electrical humidifiers, exhaust fan etc. were also taken to be necessary equipment, to effectively carrying on the manufacturing process. Thus, the Hon'ble High Court found it appropriate on appreciation of the judgment in the case JK Cotton's case that it is clear from the expression 'in the manufacture of goods' should normally encompass entire process carried on by the dealer, of co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble Chhattisgarh High Court has also in the similar facts and circumstances overruled the Larger Bench's decision of the Tribunal in the case of JaypeeRewa case and has held that the assessee is entitled to avail CENVAT Credit on the welding electrodes used in repair and maintenance of plant and machinery. Accordingly, the appellant prays for allowing the appeal. 6. The learned AR relies on the impugned order. He further urges that the Hon'ble Bombay High Court in the case of Lloyd Metals & Engineers Ltd. Vs. Union of India 2010 (252) ELT 355 (Bom), considered the similar question involving the welding electrodes used in repair and maintenance of capital goods and availing CENVAT Credit on the same, have upheld the disallo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess of manufacture like, lubricating oils, greases, cutting oils, coolants, accessories of the final products, qualify as input for the purpose of manufacture of the end product. It is undisputed fact that without the use of machinery, there cannot be manufacture, unless the machinery is in ready condition i.e. ready for use, no manufacture of cement can take place. Accordingly, the welding electrodes used for repair and maintenance of plant and machinery are indirectly used in manufacture of cement. Accordingly, I hold that the same qualifies for definition of input and the assessee is entitled to take CENVAT Credit on the same. I rely on the ruling of the Hon'ble Rajasthan High Court in the case of Hindustan Zinc Ltd. (supra), which w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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