2023 (12) TMI 1237 - AT - Central Excise

Tribunal Grants Cenvat Credit for Maintenance Tools, Citing High Court Precedents on Essential Repair Inputs.

M/s. Supershakti Metaliks Pvt. Ltd. Formerly known as Super Smelters Ltd. Versus Commissioner of CGST & Central Excise, Bolpur

M/s. Supershakti Metaliks Pvt. Ltd. Formerly known as Super Smelters Ltd. Versus Commissioner of CGST & Central Excise, Bolpur - TMI Issues involved: Denial of Cenvat Credit for wielding electrodes used in factory premises towards repairs and maintenance activities.Summary:The Appellant was aggrieved by the denial of Cenvat Credit amounting to Rs.15,838/- for wielding electrodes used in their factory premises for repairs and maintenance activities. The Appellant relied on the case law of Panipat Co-operative Sugar Mills Ltd. Vs Commissioner of Central Excise, Rohtak, emphasizing that repair and maintenance activities are essential for smooth manufacturing operations, making goods used for such activities eligible for Cenvat Credit. The Learned Authorized Representative reiterated the findings of the Lower Authorities.The judgment of the Rajasthan High Court in Hindustan Zinc Ltd. Vs. UOI was referenced, highlighting the interpretation that goods used in the manufacturing process should be considered as inputs, even if they are not directly involved in the manufacturing process but are integral for the production of goods. Similarly, the Chhattisgarh High Court and Uttarakhand High Court decisions supported the view that wielding electrodes used in the manufacturing process are considered as inputs, falling within the definition provided by the relevant Rules.Given that the present issue was in line with the decisions of the High Courts, the Appeal was allowed, and the Appellant was granted relief.