Cenvat credit on welding electrodes for machinery repair and maintenance held admissible, with the demand and penalty set aside.

Welding electrodes used for repair and maintenance of machinery were treated as eligible for Cenvat credit because the Tribunal followed its earlier ruling in the same assessee's case and held such goods to be cenvatable when used for maintenance of capital goods. The demand and penalty were found to have been wrongly sustained, and the appellate order was also noted to contain a typographical error in the amount confirmed. The impugned order was therefore set aside in favour of the assessee.

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Issues: Whether welding electrodes used for repair and maintenance of machinery or capital goods are eligible for Cenvat credit.

Analysis: The Tribunal followed its earlier decision in the same assessee's case, where it had been held that welding electrodes used for repair and maintenance of machinery are cenvatable items. The demand and penalty were found to have been wrongly sustained, and the appellate order was noticed to contain a typographical error in the amount confirmed.

Conclusion: Cenvat credit on welding electrodes used for repair and maintenance of machinery was held admissible, and the impugned order was set aside in favour of the assessee.

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