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TMI Blog2016 (12) TMI 530X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant. 1.1. The matter concerns with the admissibility of cenvat credit on structural steel items and welding electrodes. 1.2. The appellant has been represented by the ld. Advocate Ms. Shreya Dahiya and Sh. Yogesh Agarwal, ld. AR for the Revenue. 2. Ld. Advocate based on the appeal memorandum mainly submits as under: (i) The appellant has availed cenvat credit on various iron steel goods namely M.S. Angles, M.S. Channels, M.S. Joists, Plates, Beams. H.R. Coils. Etc. falling under Chapter 72 of the Central Excise Tariff Act considering the same as inputs used for manufacture/ fabrication of capital goods of Kiln (Rotary Furnace) and Power plant falling under Chapter 84 of the Central Excise Tariff Act. (ii) The appellant had also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed along with the final product, goods used as paint, or as packing material, or as fuel, or for generation of electricity or steam used in or in relation to manufacture of final products or for any other purpose, within the factory of production; (ii) all goods, except light diesel oil, high speed diesel oil, motor spirit, commonly known as petrol and motor vehicles, used for providing any output service; Explanation 1. The light diesel oil, high speed diesel oil or motor spirit commonly known as petrol, shall not be treated as an input for any purpose whatsoever. Explanation 2.- Input include goods used in the manufacture of capital goods which are further used in the factory of the manufacturer . (v) In view of the aforesaid Exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Apex Court refers to the user test evolved by Hon'ble Supreme Court in the case of CCE, Coimbatore vs. Jawahar Mills - 2002 TIOL-87 SC CX. The Hon'ble Supreme Court in the case of Rajasthan Spinning & Weaving Mills (supra) in this regard observes as under: "12. Inter alia observing that capital goods cab be machines, machinery, plant, equipment, apparatus, tools or appliances if any of these goods is used for producing or processing of any goods or for bringing about any change in the substance for the manufacture of final product, although this view was expressed in the light of the aforesaid noted definition of capital goods in the said Rule, which is not there in Rule 57Q, as applicable in the instant case, yet the user test evolved ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hey are covered under the definition of either capital goods under Section (2) (a)(A) or input under Section 2(k) of the Cenvat Credit Rules, 2004. 5.1. In respect of admissibility of cenvat credit for the item namely welding electrodes the Hon'ble Chhattisgarh High Court in the case of Ambuja Cement Eastern Ltd. vs. CCE, Raipur 2010 (256) ELT 690 (CG.) and Hon'ble Rajasthan High Court in the case of Hindustan Zinc Ltd. vs. Union of India 2008 (228) ELT 517 (Raj.) allowed the cenvat credit on the welding electrodes. We follow these decisions and hold that the appellant is entitled to cenvat credit on welding electrodes treating the same as input . 6. In the result, the impugned order is hereby set-aside and the appeal is allowed with cons ..... X X X X Extracts X X X X X X X X Extracts X X X X
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