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of <h1>High Court allows CENVAT credit for welding electrodes in machinery repair as capital goods and inputs.</h1> <h3>Hindustan Zinc Ltd. Versus C.C.E. Jaipur-2, And Anr.</h3> Hindustan Zinc Ltd. Versus C.C.E. Jaipur-2, And Anr. - TMI Issues Involved:1. Whether welding electrodes used for repair and maintenance of plant and machinery are eligible for CENVAT Credit as capital goods or inputs.2. Whether the Tribunal decision is correct when a similar issue is sub-judice before the Hon'ble Supreme Court.Summary:Issue 1: The appellant sought a decision based on a previous judgment in Hindustan Zinc Ltd. vs. Union of India & Ors., where the question of eligibility of welding electrodes for CENVAT credit was answered in favor of the assessee. The appellant argued that the judgment had attained finality as the Supreme Court had dismissed the appeal filed by the revenue. The respondent had already granted benefits based on the same judgment.Issue 2: The revenue contended that despite the dismissal of the appeal, the Supreme Court had left the questions of law open and other SLPs were pending, suggesting waiting for the Supreme Court's decision. However, the Division Bench of the High Court, in the Hindustan Zinc Ltd. case, had already settled the issue in favor of the assessee, citing relevant precedents and interpretations of capital goods for CENVAT credit eligibility.The High Court, in the Hindustan Zinc Ltd. case, analyzed the definition of capital goods and inputs, referencing previous judgments and interpretations by the Supreme Court. It concluded that welding electrodes used for repair and maintenance of plant and machinery qualified for CENVAT credit as both capital goods and inputs. The Court emphasized the liberal interpretation of the law and the necessity of the equipment for the manufacturing process, ultimately ruling in favor of the assessee.Given the settled nature of the issue by the Division Bench's judgment in the Hindustan Zinc Ltd. case, the High Court decided to allow the appeals in line with the previous decision. The application was disposed of accordingly.
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