2017 (7) TMI 480

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.... machines. Alleging that these items do not fall under the definition of 'capital goods', SCN was issued to them on 14.03.2012 for recovery of credit of Rs. 3,13,174/- for the period from April 2007 to March 2011. On adjudication, the demand was confirmed with interest and equal amount of penalty. Aggrieved by the said order, the appellant filed an appeal before the Ld. Commissioner (Appeals), upheld the adjudication order and rejected their appeal. Hence, the present appeal. 3. Ld. Advocate Shri V. S. Zhala for the appellant submitted that the Cenvat Credit availed on S.S. Sheets, Air distributor, S. S. Cold rolled coils etc. used in repairing of speed dryer machines, which are capital goods as defined under Rule 2(a) of CCR, 2004....

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....for repair and maintenance of the plant and machinery's would be liable for cenvat credit and also by the judgments of Hon'ble Chhattisgarh High Court in the case of Ambuja Cements Eastern Ltd. v. Commissioner of Central Excise (supra) and Hon'ble Karnataka High Court in the case of Commissioner of Central Excise v. Alfred Herbert (India) Ltd. (supra) wherein Hon'ble High Court have held that the inputs used for repair and maintenance of plant and machinery would be eligible for cenvat credit. The learned departmental representative has cited a contrary judgment of Hon'ble High Court of Andhra Pradesh, in the case of Sree Rayalaseema Hi-Strength Hypo Ltd. v. Commissioner of Customs & Central Excise, Tirupati reported in 2012 (278) E.L.T....