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of <h1>Tribunal grants CENVAT credit for repair & maintenance of capital goods under Rule 2(k) of CCR, 2004.</h1> <h3>M/s Birla Cellulosic Versus Commissioner of Central Excise – Bharuch</h3> M/s Birla Cellulosic Versus Commissioner of Central Excise – Bharuch - TMI Issues:1. Eligibility of CENVAT credit for items used in repair and maintenance of capital goods.Analysis:Issue 1: Eligibility of CENVAT credit for items used in repair and maintenance of capital goodsThe case involved an appeal against an order alleging the wrong availment and utilization of CENVAT credit for items such as M.S. Plate, S. S. Plate, H.R. Plate, Aluminium Coils, G.I. Earthing Strips used in repairing capital goods. The appellant contended that these items were used for repair and maintenance of capital goods within the factory premises, making them eligible for credit under Rule 2(k) of CCR, 2004. The appellant cited judgments like Kisan Sahkari Chini Mills Ltd. and others to support their argument. The Revenue, represented by the Ld. AR, upheld the findings of the Ld. Commissioner (Appeals).Upon hearing both sides and examining the records, the Tribunal considered whether the items used for repair and maintenance of capital goods were eligible for CENVAT credit under Rule 2(k) of CCR, 2004. The Tribunal referred to various judgments, including the case of Hindustan Zinc Ltd., Ambuja Cements Eastern Ltd., and Commissioner of Central Excise v. Alfred Herbert (India) Ltd., which held that inputs used for repair and maintenance of plant and machinery are eligible for CENVAT credit. The Tribunal also highlighted the broader scope of the expression 'used in or in relation to manufacture of final products' in the definition of input under Rule 2(k), emphasizing that activities like repair and maintenance are essential for smooth manufacturing and, therefore, qualify for credit. Based on these considerations, the Tribunal set aside the impugned order and allowed the appeal with consequential relief as per law.In conclusion, the Tribunal ruled in favor of the appellant, emphasizing the eligibility of items used in repair and maintenance of capital goods for CENVAT credit based on established legal precedents and the commercial necessity of such activities in the manufacturing process.---
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