2023 (8) TMI 314

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.... They use amongst other items "Electrode Carbon Paste" in the furnace to facilitate the manufacture of the finished goods. Electrode Carbon Paste is used inside the furnace and it is their contention that the same is in the nature of consumable and gets consumed during the course of the manufacturing process. They submit that Electrode Carbon Paste is also contained in the finished goods, i.e. ferro alloys and therefore, it is rightly considered to be an input in terms of Rule 2 (k) of the Cenvat Credit Rules, 2004. 3. On the other hand, it is the revenue's contention that the subject goods are in the nature of capital goods in terms of Rule 2(a) of the Cenvat Credit Rules, 2004 and accordingly, Cenvat credit on them ought to have been ava....

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....4 (Tri.- Ahmd.) taking noted of its earlier decision and thereby allowed CENVAT Credit on electrode assembly and needles. It held as: "2......."In Monnet Ispat Ltd. v. C.C.E., Raipur reported in 2002 (148) E.L.T. 1202 (Tri.-Del) it was held that the consumable items used in the induction furnace for the manufacture of ingots are inputs. Similarly it was held in Punjab General Manufacturing Works v. C.C.E, Kanpur reported in 2002 (147) E.L.T. 331 (Tri.- Del) that crucibles used for molten metals at high temperatures are consumables and have to be treated as inputs. The items used by the appellants are also of the same category and therefore I do not find any merit in the appeal filed by the Revenue and accordingly reject the same." (Empha....