2018 (2) TMI 2007 - HC - Central Excise

High Court Upholds CENVAT Credit on Capital Goods & Recognizes Web Orders Validity

PR. COMMR. OF CUS. & C. EX., RAIPUR Versus STEEL AUTHORITY OF INDIA LTD

The High Court dismissed the appeal challenging the Tribunal's decision allowing CENVAT Credit on items like Railway Track Materials, Lighting Equipments, ... CENVAT Credit - capital goods - Railway Track Materials - Lighting Equipments - Fittings and Fixtures - Refractory Cement Blocks - Plates - Welding Electrodes under Chapter 8311 - Steel Items-Beams falling under Chapter 72 - HELD THAT:- We are not able to persuade ourselves to take any different view of the matter than the one which has been taken by this Court in the matter of AMBUJA CEMENTS EASTERN LTD. VERSUS COMMISSIONER OF C. EX., RAIPUR [2010 (4) TMI 429 - CHHAITISGARH HIGH COURT] where Welding Electrode has already been considered to be input for allowing CENVAT Credit. This appeal deserves to be and is hereby dismissed. Issues:1. Challenge to the order allowing CENVAT Credit on specific items.2. Consideration of Welding Electrode as input for CENVAT Credit.3. Acceptability of web copy of orders/judgments.Analysis:1. The appeal challenged an order by the Tribunal allowing CENVAT Credit on various items like Railway Track Materials, Lighting Equipments, and Steel Items-Beams. The Tribunal held these items to be capital goods eligible for CENVAT Credit. The appellant disputed this decision, leading to the appeal before the High Court.2. The Court referred to a previous judgment in Ambuja Cements Eastern Ltd. v. Commissioner of C.Ex., Raipur, where it was established that certain items, including Welding Electrodes, were considered inputs eligible for CENVAT Credit. The appellant contended that the specific consideration of Welding Electrode as an input was not addressed in a subsequent case, leaving the issue open for discussion. However, the respondent argued that Welding Electrode was deemed an input in the previous judgment due to its essential role in manufacturing and construction processes.3. After hearing arguments from both parties, the Court found no reason to deviate from the precedent set in the Ambuja Cements Eastern Ltd. case. Consequently, the appeal was dismissed based on the same reasoning applied in the earlier judgment.4. Regarding the acceptability of web copies of orders/judgments, the Court addressed concerns raised by counsel about the reluctance of some courts to acknowledge web copies as authentic. The Court acknowledged the validity of web copies obtained from the official website of the High Court of Chhattisgarh, unless the opposing party questions their authenticity. To ensure uniformity in accepting web copies, the Court directed trial courts and subordinate authorities to rely on such copies in urgent cases where delay could lead to injustice. The decision was supported by a similar ruling from the High Court of Judicature of Bombay Bench at Aurangabad, emphasizing the reliability of web copies from official websites.5. In conclusion, the Court emphasized the importance of accepting web copies in urgent situations to prevent miscarriage of justice. The Additional Registrar (Judicial) was instructed to circulate the order to all District Judges and Judicial Officers in Chhattisgarh, as well as to relevant government authorities. The Court appreciated the counsels for raising the issue and providing valuable assistance in clarifying the acceptability of web copies of judgments.