2016 (6) TMI 1171

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....Beevi, C.S.] The appellants are engaged in manufacture of cement and clinker. They were availing the facility of CENVAT credit of duty paid on inputs and capital goods. During the period December 2009 to September 2010, they availed credit of duty amount to Rs. 36,89,517/- paid on MS angles, MS plates, MS channels, MS beams, HR coils/sheets etc. A show-cause notice was issued alleging wrong avail....

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....nveyor belt, fan chutes conveyor etc. The components/parts/accessories such as chutes, ducts, conveyor belts are not readily available to be purchases in market. They have to be fabricated suiting to the requirement of the cement plant. The subject items were also used for repair and maintenance of capital goods. Without periodical repair of plant & machinery, the manufacturing activity would not ....

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....of plant and machinery and not for manufacture of final product. Credit has been availed on MS items as inputs. As per the definition of inputs, the goods are to be used directly or indirectly in the manufacture of final products. In Sree Rayalseema Hi-Strength Hypo Ltd. [2012(278) ELT 167 (AP)], it was held, the credit is not admissible on welding electrodes for repair and maintenance is distinct....

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....ree Rayalseema Hi-Strength Hypo Ltd. In the said case, the issue was whether credit on welding electrodes used for repair & maintenance is admissible as inputs. The jurisdictional High Court in the case of CCE&C, Visakhapatnam Vs. Rashtriya Ispat Nigam Ltd. [2011(271) ELT 338 (AP)] held that credit on steel sheets & coal used in repair & maintenance of capital goods is eligible for credit. 6. The....