Cenvat credit on plates and angles used to repair machinery parts held admissible despite cutting to size in the factory.

Cenvat credit on plain plates and angles used for maintenance and repair of damaged machinery parts was admissible where the materials were ed as used in the machinery and the Chief Engineer's certificate supported that use. The fact that the plates were bought in running length and cut to size within the factory did not defeat eligibility, because that did not alter their functional use as components in machinery. The disallowance was therefore unsustainable.

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Issues: Whether Cenvat credit was admissible on plain plates and angles used for maintenance and repair of damaged parts of machinery as capital goods.

Analysis: The materials were shown to have been used in the machinery for repair and maintenance, and the adjudicating authority had accepted the Chief Engineer's certificate supporting that use. The Tribunal noted that, in a series of decisions, MS plates and angles used as components of machinery equipment had been held eligible for Cenvat credit. The denial by the Commissioner (Appeals) rested only on the fact that the plates were purchased in running length and were cut to size within the factory, but that circumstance did not negate their use in the machinery or their eligibility under the relevant Cenvat credit definition.

Conclusion: Cenvat credit on the plain plates and angles was admissible and the disallowance was unsustainable.

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