2007 (2) TMI 20

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.... of the commissioner (Appeals) dated 31-3-2000, upholding the Order-in-Original disallowing Cenvat credit of a total amount of Rs.1,33,871/-, imposing the penalty of the like amount and directing interest to be paid. 2. According to the Revenue, the appellant who was engaged in the manufacture of V.P. sugar and molasses had wrongly availed Cenvat credit on welding electrodes under Rule 2 of the....

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.... Cements & Mineral Inds. [2003 (160) E.L.T. 278 (T) = 2003 (54) RLT 557], held that welding electrodes used for maintenance of machines were not eligible for Modvat credit. It was found that the welding electrodes were used for repair and maintenance of machinery for welding purposes. The adjudicating authority also noted that in Kanoria Sugars & General Manufacturing Co. v. CCE [1996 (87) E.L.T. ....

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....been followed in J.K. Cement Works v. CCE, Jaipur - 2007 (6) S.T.R. 60 (T) decided by the Tribunal by order dated 11-12-2006 in Excise Appeal Nos. 99 and 109 of 2005-SM Branch. The authorities below have therefore, rightly held that welding electrodes which were used by the appellant were not eligible for credit either as capital goods or as inputs.  4. As regards the issue of penalty, it ....