2013 (7) TMI 2

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....lates, H.R. Sheet & angles which are used in relation to repair & maintenance of plant and machinery. The Department being of the view that these items are neither inputs nor capital goods, disallowed the cenvat credit In this regard two separate adjudication orders were passed by the Assistant Commissioner by which the cenvat credit demand of Rs. 67,141/- and Rs. 41,767/- were confirmed along with interest and penalties of equal amount were imposed. On appeals being filed against these orders, the Commissioner (Appeals) vide order- in-appeal dated 22-11-2010 upheld the Asst. Commissioner's order except for reducing the penalty. Against this order of the Commissioner (Appeals), these two appeals have been filed. 2. Heard both the sides. ....

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....ty, different and distinct from manufacture and, therefore, the steel items used for repair and maintenance of plant and machinery are not eligible for cenvat credit. He, therefore, pleaded that there is no infirmity in the impugned order. 5. I have considered submissions from both the sides and perused the records. 1 find that the issue as to whether the goods used for repair and maintenance of plant and machinery are eligible for cenvat credit, stands decided in favour of the Appellant by Hon'ble Rajasthan High Court in the case of Hindustan Zinc Ltd. (supra) wherein Hon'ble High Court has held that MS/SS plates used in the workshop meant for repair and maintenance of the plant and machinery's would be liable for cenvat credit and also....

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....particular item with manufacture of final products has to be determined on the basis of the criteria as to whether the use of that item is determined by commercial expediency and whether without use of that item, the manufacture of final product though theoretically possible is commercially inexpedient. Hon'ble Calcutta High Court in the case of Singh Alloys & Steel Ltd., reported in 1993 (66) E.L.T. 594 (Cal.) has held that the definition of input is not dependent on what ought to be used, but what is actually used and what is commercially expedient to use, that expression "in relation to" has much wider connection and on this basis held that ramming mass and dolopatch mix used in the furnace as fettling material for reducing the erosion o....