2011 (3) TMI 290

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....r and maintenance of their machinery they require welding electrodes. The show cause notices were issued to the respondents that the welding electrodes are falling under chapter heading 8311 in the nature of consumables and other structural items. Hence, the respondents are not entitled to claim the credit of duty paid on these welding electrodes. The show cause notices were adjudicated where the issue framed whether the welding electrodes were used for fabrication and manufacture of capital goods which are further used for manufacture of final goods can qualify as input or not. The adjudicating authority confirmed the demand relying upon the decision of this Tribunal in the case of G.S.Mill Aira [Final Order No.299/07-SM(BR) dt.9.2.07]. On....

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....ing electrodes used in the repair and maintenance of plant and machinery and whether the assessee is entitled for the credit on the inputs has been decided by the Hon ble Chhattisgarh High Court in the case of Ambuja Cements Eastern Ltd. vs. CCE, Raipur-2010 (256) ELT 690 and the Hon ble Karnataka High Court in the case of CCE, Bangalore-I vs. Alfred Herbert (India) Ltd.-2010 (257) ELT 29 (Kar.), in both the cases, Hon ble High Courts have held that welding electrodes used in the repair and maintenance of the plant and machinery are entitled for credit. Hence, the impugned orders may be upheld and the appeals filed by the Revenue are rejected.   5. Heard and considered.   6. I have considered the submissions of learned SDR a....