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TMI Blog2024 (9) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... essories of capital goods, along with interest - HELD THAT:- Admittedly, the clarification issued vide Circular No. 276/110/96-TRU dated 02.12.1996 is self-explanatory, which clarifies that ' As such, scope of this entry is not restricted only to the components, spares and accessories falling under Chapters 82, 84, 85 or 90 but covers all components, spares and accessories of the specified goods irrespective of their classification.' - Therefore, all the components and parts mentioned hereinabove fall under the category of capital goods in terms of Rule 2(a) of the CENVAT Credit Rules, 2004. Thus, the appellant is entitled to take CENVAT Credit thereon. Denial of CENVAT credit on welding electrodes which had been used by the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the case are that the appellant is an integrated steel plant engaged in the manufacture of various iron and steel products falling under Chapters 72 73 of the First Schedule to the Central Excise Tariff Act, 1985. The appellant avails CENVAT Credit of duty paid on various inputs and capital goods used in or in relation to the manufacture of dutiable final goods in terms of the CENVAT Credit Rules, 2004. 2.1. During the course of audit, the Revenue objected to the eligibility of CENVAT Credit availed by the appellant, on various capital goods, on the ground that the same do not fall within the definition of capital goods in terms of Rule 2(a) of the CENVAT Credit Rules, 2004. Further, it was also pointed out that some of the goods were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as also imposed. 4.1. Against the said order, the appellant is before us. 5. The Ld. Counsel appearing on behalf of the appellant submit that the CENVAT Credit on components, spares and accessories of capital goods were availed by them in terms of Rule 2(a)(iii) of the CENVAT Credit Rules, 2004 as capital goods , which includes components, spares and accessories of the goods specified at (i) and (ii) of the said definition; that as per the list of capital goods on which credit has been denied, the CENVAT Credit of Rs.1,53,78,742/- was availed on goods which are components, spares and accessories of the following goods (falling under Chapter 84 or 85 of the Central Excise Tariff Act, 1985): - a. Furnace Oven b. Earth Moving Equipment or Cran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner of Cus. C.Ex., Meerut-I v. Modi Rubber Ltd. [2000 (119) E.L.T. 197 (Tri. LB)] (iii) Raymond Ltd. v. Commissioner of C.Ex., Bhopal [2014 (300) E.L.T. 317 (Tri. Del.)] 5.3. It is further submitted that CENVAT Credit has been sought to be denied on welding electrodes which were used by the appellant in the manufacturing process and thus, CENVAT Credit thereon cannot be denied being inputs . To support this contention, the appellant has relied on the following decisions: - (i) Triveni Engineering Industries Ltd. v. Commissioner of C.Ex., Meerut-I [2018 (3) TMI 828 CESTAT, Allahabad] (ii) Manikgarh Cement v. Commissioner of C.Ex., Nagpur [2022 (9) EMI 1337 CESTAT, Mumbai] (iii) DSM Sugar v. Commissioner of C.Ex., Meerut-II [2017 (346) E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccessories falling under Chapters 82, 84, 85 or 90 but covers all components, spares and accessories of the specified goods irrespective of their classification. 8.1. Therefore, all the components and parts mentioned hereinabove fall under the category of capital goods in terms of Rule 2(a) of the CENVAT Credit Rules, 2004. Thus, we hold that the appellant is entitled to take CENVAT Credit thereon. 9. Further, we find that CENVAT Credit has been sought to be denied on welding electrodes which had been used by the appellant for manufacture of their final product and maintenance thereof. We find that the welding electrodes are the inputs which were used in manufacturing the final products by the appellant. Therefore, we hold that in terms of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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