TaxTMI 
TaxTMI 
TaxTMI 
2012 (11) TMI 255
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....al and confirmed the Order-in-Appeal dated 2-3-2009 of the Commissioner, Central Excise and Customs (Appeals), Guntur, whereby the Commissioner had allowed the Revenue's appeal and reversed the Order-in-Original dated 24-11-2008 of the Assistant Commissioner of Customs, Central Excise and Service Tax, Kurnool Division. The assessee is a company involved in the manufacture of sulphuric acid, bleaching powder, calcium hypochlorite and mono-chloro acetic acid. The goods manufactured by the assessee fall within the ambit of the Central Excise Tariff Act, 1985 and it avails CENVAT credit facility on various inputs, capital goods and services. The issue presently pertains to the entitlement of the assessee to claim CENVAT credit on welding electr....
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....t view. Relying upon the decision of the Customs, Excise and Service Tax Appellate Tribunal, Kolkata, in SAIL v. Commissioner of Central Excise, Ranchi [2008 (222) E.L.T. 233 (Tri.)], he held that the assessee was not entitled to avail credit on the duty paid on welding electrodes. He distinguished the decision of the Rajasthan High Court in M/s. Hindustan Zinc Ltd. v. Union of India [2008 (228) E.L.T. 517] on the ground that it did not pertain to welding electrodes. In the result, the Commissioner held that the assessee was liable to refund the credit availed and pay interest in case the credit was used towards payment of duty. The penalty proposed under the Show Cause Notice dated 1-7-2008 was however dropped. 3. Aggrieved, the asse....
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....d in the final product or not and includes lubricating oils, greases, cutting oils, coolants, accessories of the final products cleared along with the final product, goods used as paint, or as packing material, or as fuel, or for generation of electricity or stem used in or in relation to manufacture of final products or for any other purpose, within the factory of production; (ii) all goods, except light diesel oil, high speed diesel oil, motor spirit, commonly known as petrol and motor vehicles, used for providing any output service. Explanation-1. The light diesel oil, high speed diesel oil or motor spirit, commonly known as petrol, shall not be treated as an input for any purpose whatsoever. Explanation-2. Inp....
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.... final product and hence, they are not integrally connected with the manufacture. Pertinent to note, the decision of the Kolkata Bench of the Tribunal was affirmed by the Supreme Court in SAIL v. Commissioner of Central Excise [2008 (229) E.L.T. A127]. 8. In that view of the matter, we are not inclined to agree with the submission of the learned counsel for the assessee. The second explanation to the definition of 'input' under Rule 2(k) of the Rules of 2004 puts it beyond doubt that unless the goods are used in the manufacture of capital goods, which are thereafter used in the factory, they do not qualify as inputs. Repair and maintenance being distinct from manufacture, CENVAT credit cannot be claimed under Rule 2(k) of the Rules of....