2017 (12) TMI 437

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.... cleared scrap generated during the course of repairing of capital goods on which credit availed without payment of duty. Alleging that these items are not eligible to credit, Show Cause Notice was issued to them for recovery of credit of Rs. 72,290/- availed during the period 2011-2012 and 2012-13. On adjudication, the demand was confirmed with interest and equal amount of penalty was also imposed. On appeal, the Ld. Commissioner (Appeals) upheld the order of the Adjudicating Authority and rejected their appeal. Hence, the present appeal. 4. I find that the dispute centres around the eligibility of CENVAT credit of the duty paid on the disputed items used within the factory for repair and maintenance of the capital goods, as per the defin....

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....vat 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. 167. Since three High Courts as mentioned above, have held that the inputs used for repair and maintenance of plant and machinery are eligible for cenvat credit, I am of the view that it is these judgments which have to be followed. 5.2 The Apex Court in the case of J.K. Cotton SPG & WVG Mills Co. Ltd. v. Sales Tax Office reported in 1997 (91) E.L.T. 534 (S.C.), interpreting the scope of the expression - "in the manufacture of goods" in Section 8(3)(C) of the Central Sales Tax Act, 1....