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of <h1>Tribunal allows CENVAT Credit on welding electrodes for capital goods repair</h1> <h3>M/s. Jai Balaji Jyoti Steels Ltd. Versus Commr. of Central Excise, Customs & Service Tax, BBSR-II</h3> M/s. Jai Balaji Jyoti Steels Ltd. Versus Commr. of Central Excise, Customs & Service Tax, BBSR-II - TMI Issues:Eligibility of CENVAT Credit on welding electrodes used for repair and maintenance of capital goods.Analysis:The appellant, engaged in manufacturing sponge iron and MS ingots, availed CENVAT Credit on capital goods and inputs, leading to a dispute regarding the eligibility of CENVAT Credit on welding electrodes used for repair and maintenance of their capital goods. The Tribunal referred to a similar case involving M/s. Orient Cement Ltd., where the appellant was held eligible for CENVAT Credit on welding electrodes. The Tribunal emphasized judicial discipline and upheld the decision, rejecting the appeal. In another case involving M/s. Steel Authority of India Ltd., the Tribunal allowed the claim of the appellant for CENVAT Credit on welding electrodes based on precedents set by the jurisdictional High Court and previous Tribunal decisions. Similarly, in the case of M/s. J SW Steel [Salav Ltd.], the Tribunal ruled in favor of the appellant, stating that welding electrodes used for fabrication and installation of machinery qualify as inputs for CENVAT Credit. The Tribunal highlighted decisions by various High Courts supporting the eligibility of CENVAT Credit on welding electrodes, ultimately setting aside the impugned order and allowing the appeal.The Ld. A.R. argued that the Hon'ble Allahabad High Court favored the Revenue on the same issue, with pending appeals before the Supreme Court. However, the Tribunal cited decisions by the Hon'ble Chhattisgarh, Andhra Pradesh, and Rajasthan High Courts, along with the Commissioner (Appeal) in the appellant's subsequent case, all ruling in favor of the appellant's eligibility for CENVAT Credit on welding electrodes used for maintenance and repair. The Tribunal, respecting the decisions of the High Courts, allowed the appellant's appeal, setting aside the impugned orders and granting relief.In conclusion, the Tribunal upheld the appellant's eligibility for CENVAT Credit on welding electrodes used for repair and maintenance of capital goods, based on judicial discipline, precedents, and decisions by various High Courts. The appeal was allowed, setting aside the impugned orders in favor of the appellant.
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