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TMI Blog2017 (10) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... ds installed in the factory. Alleging that these items are not eligible to credit, Show Cause Notice was issued to them for recovery of Rs. 2,03,513/- for the period December 2013 to July 2014. On appeal, Ld. Commissioner (Appeals) upheld the impugned order. Hence, the present appeal. 3. The Ld. Advocate Shri Rahul Gajera for the appellant submits that all these items were used for repair and maintenance of the plant and machinery only and not used in fabrication and structural work, hence, eligible to credit as per the definition of 'input' prescribed under Rule 2(k) of CCR, 2004, as held in the case of Shree Kamrej Vibhag Sahakari Khand Udyog Mandli Ltd. CCE - 2017 (8) TMI 259-CESTAT Ahmedabad, Kisan Sahkari Chini Mills Ltd. Vs. Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an High Court in the case of Hindustan Zinc Ltd. (supra) wherein Hon'ble High Court has held that MS/SS plates used in the workshop meant for repair and maintenance of the plant and machinery's would be liable for cenvat credit and also by the judgments of Hon'ble Chhattisgarh High Court in the case of Ambuja Cements Eastern Ltd. v. Commissioner of Central Excise (supra) and Hon'ble Karnataka High Court in the case of Commissioner of Central Excise v. Alfred Herbert (India) Ltd. (supra) wherein Hon'ble High Court have held that the inputs used for repair and maintenance of plant and machinery would be eligible for cenvat credit. The learned departmental representative has cited a contrary judgment of Hon'ble High Court of Andhra Pradesh, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance of plant and machinery is an activity without which smooth manufacturing is not possible. Commercially, manufacturing activity is not possible with malfunctioning machines, and leaking tanks, pipes and tubes. Therefore the activity of repair and maintenance of plant and machinery is an activity which has direct nexus with manufacture of final products and the goods used in this activity would be eligible for Cenvat credit. For eligibility of an input for Cenvat credit what is relevant is whether the activity in which that input is used has nexus with the manufacture of final product and the nexus has to be determined on the basis of criteria as to whether that activity is commercially essential for manufacture of the final products." ..... X X X X Extracts X X X X X X X X Extracts X X X X
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