2016 (3) TMI 1186

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....redit on inputs viz. Welding electrodes. The learned AR Shri V.Ramakrishna explained the facts of the case. Six show cause notices were issued for different periods alleging irregular availment of credit of duty paid on welding electrodes, MS items and paints used for repair and maintenance of plant and machinery. These notices were adjudicated by the Assistant Commissioner, who confirmed the demand of irregularly availed credit, along with interest and also imposed penalty. The respondents filed appeal before the Commissioner (Appeals). It was observed by the Commissioner (Appeals) that in M/s Samruddi Cement Ltd 2013(297)ELT 562(Tri-Del), the Principal Bench, New Delhi had considered the decision of A.P.High Court and held that activity o....

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.... 338(AP) and contended that credit on steel sheets and coal used for repair of capital goods was held to be admissible. He submitted that without periodical repair and maintenance, the process of manufacturing would not be commercially feasible. That this aspect was not considered in the case of Sree Rayalaseem Hi-Strength Hypo Ltd 2012 ELT(278) ELT 167(AP) relied by the department. Further, that the decision rendered in M/s Maruthi Suzuki Ltd 2009(240)ELT 641(SC) was referred to larger Bench of Supreme Court in the case of Ramala Sahkari Chini Mills Ltd, UP Vs CCE, Meerut 2010(260) ELT 321(SC) while considering the admissibility of credit on welding electrodes used in repair and maintenance. The Hon'ble Larger Bench of Apex Court held that....

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....oes not restrict to the six items mentioned specifically in the definition. That the word 'include' is generally used to enlarge the meaning of the preceding words and it is by way of extension and not with restriction. The Coordinate Bench of the tribunal in the case of Bhushal Steel Ltd Vs CCE, Ghaziabad 2015(323) ELT 618 (Tri-Del) following the judgment of Hon'ble High Court in Singh Alloys & Steel Ltd observed that for determining the eligibility of an item for Cenvat credit, what is relevant is as to whether the activity for which that item is required has nexus with manufacture. In J.K.Cotton Spinning and Weaving Mills Ltd 1991(91) ELT 34(SC) the Hon'ble Apex court was of the view that the activity of repair and maintenance has to be ....