TaxTMI 
TaxTMI 
2019 (7) TMI 255
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....ated, the facts of the case are that the appellant is discharging Central excise duty on 'Coal', w.e.f. 01.03.2011 and availing the benefits of CENVAT credit. They availed credit of duty paid on MS plates which has been used in repair or maintenance of Heavy Earth Moving Machinery (HEMMs) used in the coal mines. Show Cause Notice dated 9th May, 2016 was issued to disallow the credit which culminated into Order-in-Original dated 30.12.2016 wherein it was held that the MS Plates used in mines for repairs cannot be said to be 'input' inasmuch as there is no relationship with the manufacture of the final product. Credit was accordingly denied and demand was confirmed with equal penalty and interest. In appeal, the adjudication order has been up....
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....te, MS Pipes, MS nut, Telescopic Steel props etc has been upheld. He stated that since the goods involved in the instant case i.e. MS Plate, is similar to the referred case of sister unit, wherein CENVAT credit has been allowed and, thus, there is no reason to deviate from the said decision. He further referred to the decision in another case of SECL vide Final Order no. 50014/2016 dated 05.01.2016 by Delhi Bench, wherein it was held that assessee is eligible for credit on various steel items (TIS Gog, Moulded Sleepers, etc) used in underground mines without which mining is not possible. It has been clearly held that such goods are not excluded from the definition of 'input' as per CENVAT Credit Rules, 2004. He further submitted that in ....
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.... in absence of fraud or suppression with intent to evade payment of duty. 4. The Ld. D R submitted that the case laws relied upon by the appellants are distinguishable and not applicable to the present case. He supported the findings of the lower authorities and submitted that the MS plates used in repair could not be said to be inputs as per definition of Rule 2(k) of the CCR, 2004. He stated that the appellant is not entitled for credit and accordingly prayed that the appeal be rejected. 5. Heard both sides and perused the appeal records. 6. In the instant case, the short issue that arises for consideration is whether the appellant is eligible to avail CENVAT credit of central excise duty paid on MS Plate used in repair and maint....
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....MM's is indispensible, in absence of which mining activity cannot be undertaken. Therefore, usage of subject goods bears a direct nexus with the mining activity and by no stretch of imagination it can be said that they have no relation with production of coal, which is the final product. The said exclusion clause is also not attracted. I also find that after the amendment made in the definition of 'input' w.e.f. 01.04.2011, the CBEC in Circular no. 943/04/2011-CX dated 29.04.2011 in serial no. (3) has clarified as below:- "Credit of all goods used in the factory is allowed except in so far as it is specifically denied. The expression "no relationship whatsoever with the manufacture of a final product" must be interpreted an....