Input credit on welding electrodes used for plant maintenance upheld as capital goods under the excise credit scheme.

Welding electrodes used for repair and maintenance of plant and machinery were treated as admissible for input credit, because earlier decisions, including the assessee's own case and the High Court's view, had already held such electrodes to fall within capital goods for credit purposes under the excise scheme. Following that settled position, the Tribunal applied the same reasoning and found the denial of credit unsustainable.

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Issues: Whether welding electrodes used for repair and maintenance of plant and machinery qualify for input credit as capital goods under the relevant Central Excise Rules.

Analysis: The issue was treated as covered by earlier decisions in the assessee's own case and by the High Court, which had held that welding electrodes used for repairs and maintenance fall within the scope of capital goods for credit purposes. The Tribunal followed that settled view and applied the same reasoning to the present appeals.

Conclusion: The appellants were held eligible for input credit on electrodes used for repair and maintenance of plant and machinery, and the denial of credit was not sustainable.

Ratio Decidendi: Welding electrodes used for repair and maintenance of plant and machinery are admissible for credit as they are treated as capital goods under the relevant excise credit scheme.

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