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TMI Blog2024 (4) TMI 785X X X X Extracts X X X X X X X X Extracts X X X X ..... y or indirectly and whether contained in the final product or not. The items used for maintenance of plant and machinery are also items used in the manufacture of finished goods. Hence, credit on the items used for maintenance, repair, upkeep or fabrication of plant and machinery are admissible to the assessees. Entitlement on the Cenvat credit on the M/s. Gratings/G.I. Coated Gratings - HELD THAT:- In view of the observation made by the Tribunal in [ 2020 (2) TMI 749 - CESTAT AHMEDABAD] it is observed that the M.S. Gratings were used as accessory for supporting and holding for approaching how to plant and processing units of refinery and platforms for approaching or reaching out the plant is part and parcel of the entire plant and machinery particularly in large scale manufacturing unit, without which the operation of the plant is not possible. It was therefore held by the Tribunal that, therefore the M.S. Gratings used as accessory in such structure is used in relation to the manufacture of final product - the Tribunal has not committed any error in following a Coordinate Bench s decision in the case of the respondent assessee itself. There is no error committed by the Tribunal g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rules, 2004?" 3. It is the case of the Revenue that whether the respondent assessee is entitled for Cenvat credit on inputs i.e. welding electrodes, wire FLR, filler Wires, Welding wires, Wire rope, material used for railway line and capital goods i.e. M.S. Gratings/ G.I. Coated Gratings or not. 4. The Commissioner of CENVAT by order in original dated 12.03.2013 denied the CENVAT credit on above items on the ground that the use of such goods for repair and maintenance of plant and machinery by the respondent assessee cannot be considered to have been used "in or in relation to the manufacture of final products", as they are not used coextensively in the process of manufacturing of the petroleum products by the respondent assessee. It was therefore held that the respondent assessee can not avail the Cenvat credit as such goods are not integrally connected with the manufacture of the petroleum products. 5. The Adjudicating Authority with regard to the Cenvat credit availed by the respondent on M.S. Gratings/ G.I.Coated Gratings held that such credit cannot be availed by the respondent as such goods can not be used by the respondent can not be classified as component spares or ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion: Maruti Suzuki Ltd. Vs. Commissioner of Central Excise, Delhi-III reported in 2009 (240) E.L.T. 641 (SC), wherein the Hon'ble Apex Court in the facts of the said case held that the inputs used as a fuel in the electricity generation was not eligible for Cenvat Credit used in generation of the excess electricity cleared for a price contractual rate in favour of the grid then such fuel would not be entitled to the Cenvat credit to the extent of the excess electricity cleared at the contractual rates in favour of the joint ventures, vendors etc. which is sold at a price. 10. Learned advocate Ms. Sancheti invited the attention of the Court to the findings given by the Hon'ble Apex Court in para nos. 14 and 16 which reads as under: "14. In the case of Collector of Central Excise, New Delhi v. M/s. Ballarpur Industries Ltd. reported in (1989) 4 SCC 566 the difference between the expression "used in the manufacture" and "used as input (raw material)" was highlighted. In that judgment, it was held that undoubtedly the said two expressions are distinct and separate, but, when an ancillary process (like electricity generation) aids the making of an end product, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... place of use. For example, one of the categories mentioned in the inclusive part is "used as packing material". Packing material by itself would not suffice till it is proved that the item is used in the course of manufacture of final product. Mere fact that the item is a packing material whose value is included in the assessable value of final product will not entitle the manufacturer to take credit. Oils and lubricants mentioned in the definition are required for smooth running of machines, hence they are included as they are used in relation to manufacture of the final product. The intention of the Legislature is that inputs falling in the inclusive part must have nexus with the manufacture of the final product. 16. In our earlier discussion, we have referred to two considerations as irrelevant, namely, use of input in the manufacturing process, be it direct or indirect as also absence of the input in the final product on account of the use of the expression "used in or in relation to the manufacture of final product". Similarly, we are of the view that consideration such as input being used as packing material, input used as fuel, input used for gener ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vs. Commissioner, Central Excise, Meerut-I, wherein about forty appeals were disposed of by the Hon'ble Supreme Court in the similar issue and it was submitted that Hon'ble Supreme Court has held that in view of the settled legal position, the interpretation of the expression "used in or in relation to manufacture" was interpreted as to the item used for maintenance of the Plant and Machinery were also held to be the item used in the manufacture of the finished goods. It was therefore submitted that the Tribunal has not committed any error in arriving at the findings that the respondent is entitled to the Cenvat credit on the items like Welding Electrodes, Welding filler Wires as capital goods as per Rule 2(k) of the CENVAT Credit Rules, 2004. 13. Having heard learned advocates for both the sides and considering the fact that the Tribunal has relied upon the decision in the respondent assessee's own case, as well as in view of the fact that now the issue is no more res-integra in view of the decision of the Hon'ble Supreme Court in case of Kisan Co-operative Sugar Factory Ltd. (Supra) wherein the Hon'ble Apex Court has held as under: "16. The controversy with regard to the produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble Supreme Court in the case of Vikram Cement V. Commissioner-2006 (197) E.L.T. 145 (S.C.), are of the view that credit on material used for laying rail line is admissible. As regard material namely M.S. Gratings/ G.I. Coated Gratings. We find that the same is used as accessory for supporting and holding for approaching how to plant/processing units of refinery. The platforms for approaching or reaching out the plant is part and parcel of the entire plant and machinery particularly in large scale manufacturing unit without which the operation of plant is not possible. Therefore, the M.S. Gratings used as accessory in such structure is used in relation to the manufacture of final product. The construction chemical was used for the maintenance of cooling towers, pumps, compressors and machine base plates etc. is used for maintenance and operation of the plant, therefore, the same can be classified as accessory for plant and machinery. Hence, being essential chemicals for running plant is admissible inputs and eligible for Cenvat Credit. We find that in respect of all the items in question, this tribunal/High Court/Supreme Court has given judgment in favour of the assessee. ..... 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