2017 (7) TMI 895

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....ng CENVAT Credit on capital goods and inputs. In the present case, the dispute relates to the eligibility of the Cenvat Credit on welding electrodes used for repaid and maintenance of their capital goods like conveyor systems, SMS crane, structural electrical etc. use of the final product in their factory. 4. I find that on the identical issue, the Tribunal in the case of CCE&ST Vs. M/s. Orient Cement Ltd.[2017 (5) TMI 629 (CESTAT-Hyderabad)] dismissed the appeal filed by the Revenue. The relevant portion of the said decision is reproduced below: "5. On perusal of the records, I find that the issue fails for consideration in this case is whether respondent is eligible to avail CENVAT credit on the Central Excise duty paid on welding elect....

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....ch an order which is following the final order of Tribunal. The appeal is rejected. In the case of M/s. Steel Authority of India Ltd. Vs. CCE, Raipur [2017 (4) TMI 744-CESTAT-New Delhi], the Tribunal held as under: "iv) Welding electrodes  under Chapter 8311 (Issue No.4) 13. This issue has been dealt with in the impugned order in its para 5.1 where the Cenvat Credit of 32,77,255/- has been denied to the appellant. 14. After hearing both the parties, it is evident that the issue is covered by the ratio laid down by the jurisdictional High Court in the case of Ambuja Cements Eastern Ltd. Vs. CCE, Jaipur -2010(256) ELT 690( Chhattisgarh) which was followed by the Tribunal in the appellant's case (Steel Authority of India Vs. CC....

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....nder the definition of capital gods under Rule 2 (a) of the Cenvat Credit Rules, 2004 and have come to the conclusion that the credit will not be allowable under this Rule. However, we find that the credit of duty paid on Welding Electrodes has been held allowable by several decisions of this Tribunal and hence the issue is no more as integra. We also find that several High Courts have also allowed such credit considering the same as allowable within the definition of input under the Cenvat Credit rules. One such reference can be made to the decision of the Hon'ble High Court of Chhattisgarh in the case of Ambuja Cements Eastern Ltd. Vs. Commissioner of Central Excise, Raipur, 2010 (256) ELT 690 (Chhattisgarh)-2010-TIOL-309-HC-CHHATTISGARH-....

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....held that, unless the welding electrodes used in the manufacture of capital goods, which are thereafter used in the factory do not qualify as inputs. CENVAT credit cannot be claimed. As already recorded by me, the claim of the appellant that the welding electrodes are used for fabrication of supporting structure and capital goods being not controverted, the ratio of the decision of SreeRayalaseema Hi-Strength Hypo Ltd. (supra) is also in favour of the appellant. In view of the above, I set aside the impugned order and allow the appeal with consequential relief, if any. On the other hand, the Ld. A.R. submitted that on the identical issue the Hon'ble Allahabad High Court passed order in favour of the Revenue. He submits that the assessee fi....