TaxTMI 
TaxTMI 
2023 (7) TMI 388
X X X X Extracts X X X X
X X X X Extracts X X X X
....ion Bench of this Court in Hindustan Zine Ltd. Vs. Union of India & Ors., reported in 2008 (132) ECC 3. 2. This appeal has been admitted while framing the following question of law : "Whether Oxygen Gas & Acetylene Gas used for repairs and maintenance of plant and machinery can be treated to be components/spares and/or accessories of welding machine falling under Heading 84.68 of Chapter 84 of the Tariff and consequently eligible for CENVAT Credit as capital goods in terms of Rule 2(a)(A)(iii) of the CENVAT Rules, 2004 ?" 3. Learned counsel for the appellant has submitted that the question of law, framed in this appeal, has already been answered in favour of the assessee and against the revenue by the Division Bench of this C....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... this Court is in respect of welding electrodes is fully applicable in the present case. 8. Learned counsel for the revenue is not in a possession to dispute the above fact. 9. This Court, in Hindustan Zinc Ltd.'s case (supra), while considering the question of law, whether welding electrodes used for repairing and maintenance of plant & Machinery both as capital goods as well as inputs, has answered the same in favour of the assessee and against the revenue by making following observations : "6. This appeal was admitted on 13th January, 2006, by framing the following substantial question of law: Whether welding electrodes used for repairs and maintenance of plant and machinery are eligible for CENVAT credit both as ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eted very liberally. Then the contention of the Revenue, about the goods involved, being not satisfying the requirement of capital goods, was negatived on the ground, that it was not the case of the Revenue, set up all through. 9. On the other hand in JP Rewa's case the eligibility of credit was denied, which was claimed as "inputs". Then so far as the claim made for MODVAT credit on the basis of it being capital goods, it was denied only on the ground, that in the declaration, it was not so claimed, and the Assessee has not even furnished details of any capital goods for captive consumption, to enable the adjudicating Authority to ascertain, whether such goods were covered by definition of capital goods. Thus, for want of evid....
X X X X Extracts X X X X
X X X X Extracts X X X X
....activity, is so integrally connected with the ultimate production of the goods, but for that process, manufacturing, or processing of the goods would be commercially inexpedient, goods required in that process would, fall within expression "in the manufacturing of goods". 12. In our view the proposition propounded above sets the controversy at rest. The question, as framed, is accordingly required to be answered in favour of the Assessee. 13. We are not inclined to accept the logic and reason given in the JP Rewa Plant Mills's case, and following the letter and spirit of the JK Cotton's case coupled with Jawaharmal's case, set aside the Order of the Authorities below. 14. In view of the above discussio....