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of <h1>Tribunal grants Cenvat credit for essential manufacturing inputs, overturning Commissioner's denial.</h1> <h3>Nayara Energy Limited Versus Commissioner of Central Excise & ST, Ahmedabad-I</h3> Nayara Energy Limited Versus Commissioner of Central Excise & ST, Ahmedabad-I - TMI Issues involved:The issues involved in this case are whether the appellant is entitled to Cenvat credit on various inputs and capital goods, including welding electrodes, wire FLR, filler wires, welding wire, wire rope, material used for railway lines, and M.S. Gratings/G.I. Coated Gratings.Welding Electrodes, Wire FLR, Filler Wires, Welding Wire, Wire Rope:The Commissioner denied Cenvat credit on these items, stating they were not used 'in or in relation to the manufacture of final products' as they were not integrally connected with the manufacturing process of petroleum products. The appellant argued that these items were essential for repair and maintenance of plant and machinery, crucial for smooth manufacturing operations. They cited various judgments supporting their claim.Material Used in Laying of Rail Lines:The Commissioner disallowed Cenvat credit on material used for laying rail lines outside the factory premises. The appellant contended that the railway track was directly connected to the manufacture of final products as it was used exclusively for handling materials within the factory premises. They supported their argument with relevant judgments.M.S. Gratings/G.I. Coated Gratings:The Commissioner rejected Cenvat credit on these items, stating they could not be classified as components, spares, or accessories of plant and machinery. The appellant argued that M.S. Gratings were essential accessories for supporting and holding plant units, without which the processing unit could not function. They relied on various judgments to support their claim.Final Decision:The Tribunal, considering previous judgments and the appellant's arguments, held that all the goods in question were used in or in relation to the manufacture of final products. They found that the appellant was entitled to Cenvat credit on these goods and set aside the impugned order, allowing the appeal with consequential relief, if any, as per law.
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