2009 (9) TMI 778

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....cate, for the Respondent. ORDER In this case the Asstt. Commissioner vide order-in-original dated 29-6-06, while allowing the capital goods Cenvat credit in respect of Bagasse Carrier chain; disallowed the capital goods Cenvat credit in respect of welding electrodes used for repair and maintenance of the machinery and on this basis confirmed Cenvat credit demand of Rs. 73,856/- and imposed p....

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....dit is taken wrongly and since in this case, the respondent has taken Cenvat credit on welding electrodes, which was not admissible, some penalty should have been imposed on the respondent and that, therefore, the impugned order setting aside the penalty is not correct. He pleaded that there is no provisions in Rule 15 that in the cases where there is some dispute the penalty can be waived. 2.2....

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....ment Ltd. reported in 2009 (238) E.L.T. 411 has also held that welding electrodes used for repair and maintenance of plant and machinery are covered by the definition of capital goods. He also cited the judgment of Hon'ble Rajasthan High Court in the case of UOI v. Hindustan Zinc Ltd. reported in 2007 (214) E.L.T. 510 (Raj.) wherein it was held that MS/SS plates used in workshop meant for repair a....

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....nvat credit as capital goods as well as an inputs. Though recently, Division Bench of the Tribunal in the case of Vikram Cement v. CCE, Indore [2009 (242) E.L.T. 545 (Tri. - Del.)] has held that welding electrodes are not eligible for Cenvat credit as inputs, in that judgment the eligibility of welding electrodes for Cenvat credit as capital goods has not been considered and thus on the question o....