TaxTMI 
TaxTMI 
2015 (10) TMI 1370
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....er India. Each depot has Central Excise registration as a registered dealer. The present dispute in respect of Sahibabad unit. The duty paid pipes cleared by Sahibabad unit, Khopoli unit and Angul unit of the appellant to depots are sold from the depot under cenvatable invoices issued by the depots. The depots have registration as registered dealers. However, since, the pipes are sold on the basis of length, some end cuttings are left which are not saleable, these end cuttings of pipes are sent by the depots to Sahibabad unit under invoices issued by the depots as registered dealer. In these invoices, the concerned depots mention the proportionate duty paid in respect of pipes. The Sahibabad unit on receiving the end cuttings of pipes avail....
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.... 39,140/- in respect of this item, while according to this item is not covered by the definition of 'capital goods' and, hence, is not eligible for Cenvat credit. 4. It is in view of the above that after issue of show cause notice, the Commissioner by order-in-original No. 20-21/Commr./GZB/2013-14 dated 21/01/14 has confirmed the Cenvat credit demand of Rs. 1,21,99,524/- (Rs. 1,20,48,313/- + Rs. 1,51,211/-) for the period from April 2008 to March 2013 against the appellant alongwith interest on it under Section 11AA and beside this, imposed penalty of equal amount on them under Section 11AC of Central Excise Act, 1944. Against this order of the Commissioner, this appeal has been filed. 5. Heard both the sides. 6. Shri Rajesh Chhi....
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....are of the precision pipes which had been cleared by Sahibabad unit, Khopoli unit, Angul unit of the appellant company on payment of duty to depots and the depots under their invoices have sent the end cuttings to Sahibabad unit by passing on the proportionate credit, that there is no justification for re-calculation of the duty payable on the end cuttings of pipes on the basis of its scrap value, mentioned in the invoices and confirming the Cenvat credit to that amount, that in this regard he relies upon the judgment of the Apex Court in the case of Commissioner of Central Excise & Customs vs. MDS Switchgear Ltd. reported in 2008 (229) E.L.T. 485 (S.C.), wherein it has been held that the recipient manufacturer who has received the inputs f....
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....Ambuja Cement Eastern Ltd. reported in -2010 -TIOL -309- HC- Chhattisgarh -CX. Though Hon'ble High Court of Andhra Pradesh in the case of Sree Rayalaseema Hi-Strength Hypo Ltd. vs. CCE, Tirupati reported in 2012 (278) E.L.T. 167 (A.P.) has taken a contrary view, since majority of the High Courts have held that welding electrodes used for repair and maintenance of plant and machinery are eligible for Cenvat credit, in our view it is these judgments of these High Courts which would hold the field. Therefore, we hold that the denial of Cenvat credit in respect of welding electrodes used for repair and maintenance of plant and machinery and Cenvat credit demand on this basis is not sustainable. 10. As regards the capital goods Cenvat credi....