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TMI Blog2018 (1) TMI 1439X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of CENVAT credit during the period 2010-2011, 2011-12, 2012-13, 2014-15 (up to Sept. 2014) in respect of M.S. HR Coils, Aluminium Coils, Welding Rods etc., used for the purpose of repairing and maintenance of their capital goods. On adjudication, the demand was confirmed with interest and equal amount of penalty imposed. Aggrieved by the said order, the appellant filed an appeal before the Ld. Commissioner (Appeals), who in turn, rejected their appeal. Hence, the present appeal. 3. Ld. C.A. Shri Vikash Agarwal for the appellant submitted that HR Coils, Aluminium Coils, Welding Rods etc, are used for repair and maintenance of various machineries, storage tanks etc., which are all capital goods within the definition of Rule 2(a) of CCR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kshop 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 the case of Sree Rayalaseema Hi-Strength Hypo Ltd. v. Commissioner of Customs & Central Excise, Tirupati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring 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. 6. I do not see any reason to deviate from the above findings of the Tribunal. In the result, the impugned order is set ..... X X X X Extracts X X X X X X X X Extracts X X X X
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