2015 (10) TMI 2273

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....R Per: Sulekha Beevi C.S. The question that has to be considered in the above appeal is whether the credit is admissible on welding electrodes. 2. The appellant has filed the appeal challenging the impugned order which upheld disallowance of credit, ordered recovery of the same alongwith interest and imposed equal amount of penalty. 3. The appellant is engaged in the manufacture of refractory....

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....by the appellant for repair of plant and machinery. These machineries are essentially used for manufacture of final products. Thus, welding electrodes are indirectly used by appellant in or in relation to the manufacture of final products. Learned Counsel placed reliance on the following judgement:-  (1) Bajaj Hindustan Ltd. vs. CCE, Lucknow-2014 (313) 563 (Tri.-Del.)  (2) CCE, Raiga....

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....redit of the welding electrodes used for repair and machinery of the plant and machinery is concerned, this issue stands decided by the judgment of three High Courts, as mentioned above - judgment of Hon'ble Rajasthan High Court in the case of Hindustan Zinc Limited v. Union of India (supra), judgment of Hon'ble Chhattisgarh High Court in the case of Ambuja Cements Eastern Ltd. v. CCE, Raipur (sup....

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.....L.T. 34 (S.C.), while interpreting the scope of the expression "used in the manufacture of" in Section 8 (3)(b) of Central Sales Tax Act, 1956 has held that if a process or activity is so integrally related to the ultimate manufacture of goods so that without that process or activity, the manufacture may, even if theoretically possible, be commercially inexpedient, the goods intended in that proc....