TaxTMI 
TaxTMI 
2013 (7) TMI 787
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....Cenvat Credit on the welding electrodes and confirmed the Cenvat Credit demand of Rs. 76,254/- along with interest and also imposed of penalty of Rs.76,254/- on the appellant. On appeal to Commissioner (Appeals) the above order of the Assistant Commissioner was upheld vide order-in-appeal dtd. 29.01.2010 against which this appeal has been filed. 2. Head both the sides. 3. Sh. S.D.Gaur, ld. counsel for the appellant, pleaded that welding electrodes, in question, were used for repair and maintenance of plant and machinery of sugar mill, that regular repair and maintenance of pant and machinery is necessary for smooth manufacturing operation that Hon'ble Chhattisgarh High Court in case of Ambuja Cement Eastern reported in 2010 (256) ELT-690 ....
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....ies Ltd. Vs. Union of India reported in 2011(273) ELT-10(SC) has also held that scrap or waste arising from repair & maintenance of plant and machinery is not excisable as the same is neither by product nor the final product or subsidiary product, as repair and maintenance activity is not manufacture, and that in view of this, any item used for repair and maintenance of plant and machinery cannot be treated as having been used in manufacture of final product and would not be eligible for Cenvat Credit. He, therefore, pleaded that there is no infirmity in the impugned order. 5. I have considered the submissions from both the sides and perused the records. There is no dispute that the welding electrodes in question, have been used for repair....
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.... relation to manufacture or which facilitates the conduct of manufacture will be included within Rule 13. Attention in this connection may be invited to a judgment of this Court in which it was held that vehicles used by a company (which mined ore and turned out copper in carrying an activities as a miner and as a manufacturer) fell within Rule 13, even if the vehicles were used merely for removing ore from to the mines to the factory, and finished goods from the factory to the place of storage. Spare parts and accessories required for effective operation of those vehicles were also held to fall within Rule 13, See Indian Copper Corporation Ltd. Vs. Commissioner of Commercial Taxes, Bihar CA No. 1021 of 1969 dt. 19.10.1964. Thus, in term o....
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....ance would have to be treated as goods used in relation to manufacture. 7. Moreover I find that Hon'ble Chhattisgarh High Court in case of Ambuja Cement Eastern Ltd. (Supra) has held that welding electrodes used for repair and maintenance of plant and machinery eligible for Cenvat Credit. In this case Hon'ble Chhattisgarh High Court has also discussed the judgment of Tribunal in the case of M/s. Steel Authority of India Ltd. Vs. Commissioner of Central Excise, Ranchi reported in 2008(222) ELT-233 (Tri. Kolkata) the SLP filed by SAIL against which has been dismissed by the Apex Court and has observed that mere dismissal of SLP without giving any reason does not lay down any law. Hon'ble Rajasthan High Court in case of Hindustan Zinc Ltd. re....