2008 (12) TMI 500

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....der]. -  The issue involved in this appeal is whether Cenvat credit can be availed on welding electrodes used for the purpose of repair and maintenance of capital goods (machinery). The dispute relates to the period April, 2006 to October, 2006 and the duty involved is Rs. 3,44,755/- and a penalty of  Rs. 1,75,000/- has been imposed under Rule 5 of Cenvaf Credit Rules. The original auth....

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.... High Court relied upon the decision of the Hon'ble Supreme Court in the case of CCE v. Jawahar Mills, 2001 (132) E.L.T. 3 (S.C.) = 2001 (45) RLT 739 (S.C.) and J.K. Cotton Spg. & Wvg. Mills Co. Ltd. [1997 (91) E.L.T. 34 (S.C.) Reference was also invited to another decision of the Rajasthan High Court in the case of Union of India v. Hindustan Zinc Ltd., 2007 (214) E.L.T. 510 (Raj.) wherein the Ho....

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....rlier period reported in 2008 (225) E.L.T. 222 (Tri.-Mum.) and Tribunal decision in the case of India Sugars and Refineries Ltd., 2006 (205) E.L.T. 517 (Tri.-Bang.) = 2006 (74) RLT 61 (CESTAT-Ban.), Manikgrah Cement, 2008-TIOL-43-CESTAT-Mum., ITC Ltd. v. C.C.Ex., 2008-TIOL-117-CESTAT-Bang. and CCE v. Andhra Sugars Ltd., 2006 (74) RLT 284 (CESTAT-Ban.). 3. The ld. DR, however, referred to the....

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....AIL as stated in para 5 of the Tribunal's decision was that the machinery was not used in the production of the final products. Hence in these facts the Supreme Court dismissed the SAIL appeal. However, without prejudice to above, it was submitted that in any case the issue is one of interpretation where there have been contradictory views for and against the issue and therefore penalty is not imp....