CENVAT on welding electrodes

[Yatin Bhopi]

 We are manufacturer of chemicals. To run the plant smoothly and keep it in good working condition there is always need of repair and maintenance of plant. Welding electrodes are use in repair and maintenance work. There are several case laws in support where CENVAT is allowed and there are many case laws against the assesses. My query is in current scenario i.e. current definition of input is cenvat available now?

[PAWAN KUMAR]

You may  claim cenvat credit as inputs.

[Kameshwar Tiwari]

Sure. As per current difinition of input services the cenvat on electrodes can be taken as inputs.

[phaniraju konidena]

My dear Yatin Bhopi,

You can take the cenvat credit on welding electrodes, which are used in repair and maintenance of Plant & Machinery. as per the following latest CESTAT cases laws.

1. In the case of THE KANORIA SUGAR & GENERAL MANUFACTURING COMPANY LTD Vs. CCE, Allahabad reported in 2013 (7) TMI 787 - CESTAT NEW DELHI the CESTAT Bench of Delhi while allowing the appeal has held that CENVAT - Welding electrodes used for repair and maintenance of plant and machinery are eligible for CENVAT Credit – Order set aside and appeal allowed: CESTAT [ paras  7 & 8].

2. In another case of  DSCL SUGAR Vs. CCE, Lucknow reported in 2013 (7) TMI 786 - CESTAT NEW DELHI the same bench allowing the appeal has held that CENVAT - Welding electrodes used for repair and maintenance of plant and machinery are eligible for CENVAT Credit – Order set aside and appeal allowed: CESTAT [ paras 7 & 8].

With regards,

K.PHANI RAJU

AI Summary

Cenvat credit on welding electrodes affirmed as inputs for repair and maintenance, enabling input credit subject to compliance.
CENVAT credit is available on welding electrodes used in repair and maintenance of plant and machinery when such electrodes are treated as inputs. Recent tribunal decisions have allowed appeals and set aside orders, supporting the position that welding electrodes employed for upkeep and repair qualify as eligible for CENVAT credit under the current definition of input.