2016 (12) TMI 767

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....a Beevi, C.S.] The appellants are the manufacturers of ordinary Portland cement and clinker. It was noticed by the department that appellants availed CENVAT credit on Wear Resistant Plates, Impact Liner Plates, Cooler Sidewall Plates, Blow Bar Chains, LS Crush Hammers which were used by the appellant for repairs and maintenance of capital goods. Department considered such plates in the nature of ....

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.... under: 3. This Court concluded that goods once brought in factory for use in up-keep and maintenance of plant and machinery, which are directly used in manufacture of excisable articles, are the capital goods, and were certainly of subordinate necessity to such plant and machinery for the running of plant and is otherwise essential for its smooth and regular operations. Without proper up-keep an....

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....lding that the credit availed on subject items used for repairs and maintenance of the machinery is eligible for credit. It is also submitted by the Ld. Counsel for appellant that relying upon the said judgment of the Hon'ble High Court of Karnataka the Commissioner (Appeals) has dropped the proceedings of appellant in respect of demand raised in subsequent year vide Order-in-Appeal No. GUN-EXCUS-....