2019 (2) TMI 405

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....peal for denying CENVAT credit on the welding electrodes while the revenue is in appeal against the said order for dropping of the demands raised by invoking extended period. 2. The relevant facts that arise for consideration are appellant during the period in question 24.09.2009 to 23.09.2010 availed CENVAT credit on various items including welding electrodes. On scrutiny of records, the audit party noticed that the appellant's availment of CENVAT credit of the duty paid on welding electrodes is incorrect. Accordingly, a show cause notice was issued for demand of such credit by invoking extended period. Appellant contested the show cause notice on the ground that these welding electrodes were used for fabrication and repairs and mainten....

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....4. Learned departmental representative, on the other hand, submits that welding electrodes which are used are not eligible for CENVAT credit is the law settled. It is his submission that Hon'ble High Court of Bombay in the case of Manikgarh Cement [2018 (360) ELT 86 (Bom.)] and Lloyd Metals and Engineers Ltd [2010 (252) ELT 355 (Bom.)], clearly held that welding electrodes used for repairing/ maintenance of capital goods were not eligible for CENVAT credit. He also relies upon the judgment of Hon'ble High Court of Allahabad in the case of CCE, Lucknow Vs Nandganj Sihori Sugar Co. Ltd [2017 (357) ELT 13 (All.)] for the same proposition. 5. On careful consideration of the submission made, we find that in the appellant's own case on similar....

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....nsurance Corporation (supra) that the word "include" in the statutory definition is generally used to enlarge the meaning of the preceding words and it is by way of extension, and not with restriction. We answer the question referred to us in the above manner leaving it for the appropriate bench of this Court to decide on the factual parameters of the case(s) and the entitlement of the assessee(s) to Cenvat credit in the facts of each case." 6. The interpretation given by the Apex Court in the case of word 'inputs include' would fully apply in the case in hand and accordingly, we hold that the impugned order to the extent contested by the appellant is liable to be set aside and the order contested by the revenue needs to be upheld. 7.....