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TMI Blog2018 (5) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... ing that these items are not eligible to credit, Show Cause Notice was issued to them for recovery of Rs. 1,51,084/- for the period December 2011 to February 2014. On adjudication, the demand was confirmed alongwith interest. On appeal, the Ld. Commissioner (Appeals) upheld the adjudication order. Hence, the present appeal. 3. The Ld. Advocate Shri S.J. Vyas for the appellant submits that all these items were used for repair and maintenance of capital goods, hence, eligible to credit as per the definition of "input" prescribed under Rule 2(k) of CCR, 2004. He submits that the credit availed on the above items used for repair and maintenance of capital goods are held to be admissible in the case of Shree Kamrej Vibhag Saha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... repair and maintenance of plant and machinery are eligible for cenvat credit, stands decided in favour of the Appellant by Hon'ble Rajasthan 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 eli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... input in Rule 2(2) would cover all the goods whose use is commercially expedient in manufacture of final products. 5.3 Repair and maintenance 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 h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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