2014 (1) TMI 1651

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....20083/2014<br>Central Excise<br>B.S.V. Murthy, J. For The Appellant : Raghavendra B., Advocate For The Respondent : A.K. Nigam, Addl. Commissioner (AR) ORDER 1. Cenvat credit of duty paid on HR Sheets and Steel Plates used for maintenance of storage tanks by the appellant has been denied and credit utilized has been demanded with interest and penalty also has been imposed in the impugn....

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....horities have relied upon the Board's circular issued taking note of the decision of the Hon'ble Supreme Court in the case of Saraswati Sugar Mills Vs. CCE, Delhi-III [2011 (270) E.L.T. 465 (S.C.)] and the decision of the Larger Bench of the Tribunal in the case of Vandana Global Ltd. Vs. CCE, Raipur [2010 (253) E.L.T. 440 (Tri.-LB)]. In the Circular Board had clarified that the Steel Plates, Shee....

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.... Tribunal. In view of a Larger Bench decision of this Tribunal vide Commissioner v. Modi Rubber Ltd. [2000] (119) ELT 197 (Tri.-L.B)], this alternative plea is, prima facie, liable to be entertained. Accordingly, we have considered the plea. The steel items in question are claimed to have been used for repairs/maintenance of capital goods by way of replacement of old/worn out parts/components of s....

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.... under Rule 2(k) in respect of welding electrodes used for repairs. Welding electrodes used for repairs/maintenance of capital goods never become part of such capital goods. On the other hand, the steel items used for replacement of worn out parts of capital goods go to become part of the capital goods. This distinction has to be borne in mind in the context of examining whether the Hon&#39;ble Hi....