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<h1>Use in or in relation to manufacture broadly includes maintenance and fabrication supplies, permitting input credit for such items.</h1> Items used for maintenance, repair, upkeep or fabrication of plant and machinery fall within the wide phrase 'used in or in relation to manufacture' and ... Admissibility of CENVAT/credit on items used for maintenance, repair, upkeep or fabrication of plant and machinery - interpretation of the expression 'used in or in relation to manufacture' as of wide import - application of precedent to dispose of appeals - disposal of proceedings on account of 'low tax effect' while leaving open substantial questions of law - HELD THAT:- The appeals in which credit for items used in maintenance, repair or upkeep of plant and machinery was claimed are allowed in terms of the cited precedent that construes 'used in or in relation to manufacture' broadly; other Special Leave Petitions were disposed of or dismissed by applying earlier orders or, where fiscal impact was small, disposed of on 'low tax effect' while leaving open any substantial question of law. Issues: Whether credit on items such as welding electrodes, jointing sheets and other items used for maintenance, repair, upkeep or fabrication of plant and machinery is admissible as being 'used in or in relation to manufacture'.Analysis: The Court examined the scope of the expression 'used in or in relation to manufacture' and applied settled legal principles holding that the phrase has wide import and includes items used in the process of manufacture whether directly or indirectly and whether contained in the final product or not. The Court considered prior authority which held that items used for maintenance, repair, upkeep or fabrication of plant and machinery are encompassed within items 'used in' manufacture and therefore qualify for credit.Conclusion: Credit on welding electrodes and similar items used for maintenance, repair, upkeep or fabrication of plant and machinery is admissible; the appeals are allowed in terms of the cited judgment.Ratio Decidendi: The expression 'used in or in relation to manufacture' is to be interpreted broadly to include all items used in the process of manufacture (directly or indirectly), including items used for maintenance, repair, upkeep or fabrication of plant and machinery, and such items qualify for input credit.
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