https://www.taxtmi.com/caselaws?id=203951 Items used for repair, maintenance, production, or as components, spares and accessories of eligible machinery can qualify for Cenvat credit under the Cenvat Credit Rules. The tariff-heading restriction applies to capital goods themselves, not to their spares and accessories. On that basis, welding electrodes used for repair and maintenance were treated as eligible inputs, and the other disputed items were found creditable because of their functional use in the manufacturing process. Penalty was not sustainable, and only the uncontested portion of the demand remained payable. en-us Thu, 02 Dec 2010 00:00:00 +0530 Sat, 28 May 2011 14:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=203951 Items used for repair, maintenance, production, or as components, spares and accessories of eligible machinery can qualify for Cenvat credit under the Cenvat Credit Rules. The tariff-heading restriction applies to capital goods themselves, not to their spares and accessories. On that basis, welding electrodes used for repair and maintenance were treated as eligible inputs, and the other disputed items were found creditable because of their functional use in the manufacturing process. Penalty was not sustainable, and only the uncontested portion of the demand remained payable. Case-Laws Central Excise Thu, 02 Dec 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=203951