2011 (7) TMI 599

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....l goods received in their factory for the manufacture of final products under the provisions of Cenvat Credit Rules, 2002/2004. During the period April, 2003 to June, 2003 The appellants availed the credit on welding electrodes S.S.Coil, M.S.Angle, M.S.Channels, Joists as capital goods, which are used in the maintenance and repairs of plant and machinery already installed in their factory premises. It was observed by the department that these goods, namely, welding electrodes S.S.Coil, M.S.Angle, M.S.Channels and Joists did not qualify either as inputs or as capital goods in terms of Rule 2 of Cenvat Credit Rules, 2002/2004 respectively for availing the credit of duty paid thereon. The original authority has disallowed the credit taken on t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....uction, the said input would not become eligible input. He, therefore, submits that the impugned order passed by the Commissioner (Appeals) is proper and is required to be upheld. Learned JCD also relied upon the CESTAT decision in the case of Kisan Sahakir Chini Mills Ltd. s. CCE, Meerut-II reported in 2010 (261) ELT 308 and in the case of Vikram Cement vs. CCE, Indore reported in 2009 (242) ELT 545. 5. After hearing learned JCDR and going through the case law, I find that the issue involved in this case is whether the credit is available on welding electrodes S.S.Coil, M.S.Angle, M.S.Channels, Joists used for repair and maintenance of the plant and machinery of sugar mills treating these items as inputs or capital goods. The appellants s....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....as supporting structures of equipment in the factory of production, without which these sugar mill machineries cannot work." 6. From the above, it is seen that M.S.Angle, M.S.Channels, Joists are used as supporting structures of equipments as held by the decision of the Larger Bench of the Tribunal in the case of Vandana Global Ltd. vs. CCE, Raipur cited supra that the credit on these items is not admissible to the assessee as these are not the inputs under the definition of input 7. As regards, welding electrodes, the Commissioner (Appeals) in the impugned order disallowed the credit on the welding electrodes relying on the larger bench decision of the Tribunal in the case of Jaypee Rewa Plant vs. CCE, Raipur reported in 2003 (159) ELT 5....