9911796707
TMI Blog2023 (12) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... 1985. The appellants have been availing CENVAT credit under Rule of CENVAT Credit Rules, 2004 on inputs and capital goods which are used in the manufacture of cement. They have taken credit of duty paid on welding electrodes falling under Chapter Sub Heading 831100. They used the welding electrodes in the maintenance and repair of their capital goods which are used in the manufacture of cement. Revenue was of the opinion that these welding electrodes were not covered under the definition of capital goods under Rule 2 of CENVAT Credit Rules, 2004. Hence the CENVAT credit on welding electrodes taken wrongly and utilized was liable to be recovered along with interest and penalty. Accordingly, three Show Cause Notices were issued covering the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er directly or indirectly and whether contained in the final product or not and includes 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 steam used in or in relation to manufacture of final products or for any other purpose, within the factory of production." 5. I find that the whether welding electrodes were covered under Rule 2 of CENVAT Credit Rules, 2004, and were eligible for CENVAT credit, or otherwise is no longer res integra and are covered by the following judgments referred to by the appellant. (a) Madras Cements Ltd. Vs. CCE, Trichy vide Final Order No. 40608 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om a reading of the above judgments it is clear that the use of welding electrodes are integrally connected to capital goods and thereby with the process of manufacture. They are used for the maintenance of capital goods installed in the appellant's plant. Without the use of welding electrodes, during maintenance of capital goods whenever necessary, the machine may not function and manufacture would be impossible or commercially inexpedient. Welding electrodes which are hence used in relation to the manufacture of final products come under the definition of 'inputs' as per Rule 2 of CENVAT Credit Rules, 2004. Therefore, the eligibility of the said inputs for CENVAT credit cannot be denied. 8. Thus, the impugned order dated 04/02/2015 passe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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