GUJARAT PLYBOND Vs. COMMISSIONER OF CENTRAL EXCISE, CUSTOMS AND SERVICE TAX
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Commissioner Of Central Excise, Customs And Service Tax
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H.K.THAKUR,MEMBER (T) -
(1.)THIS appeal has been filed by the appellant with respect to OIA No. SRP/205/DMN/2012 -13 Dated 23.01.2013. Under this OIA first appellate authority has upheld OIO No. VAPI -I/DEMAND (S.TAX)/08/2012 -13 Dated 12.09.2012. The issue involved in this appeal is whether appellant will be eligible for CENVAT credit under Cenvat Credit Rules, 2004 with respect to Lead Ingots, used internal lining or coating of certain reaction vessels.
(2.)Shri D.K. Trivedi (Advocate) appearing on behalf of the appellant argued that certain chemical reactions are required to be undertaken by the appellant for manufacturing chemicals in the factory. That the chemical reactions are of corrosive nature and will damage the reaction vessels if the same are not coated with lead. Learned Advocate argued that coating of the vessels is an essential requirement in the manufacture of the chemicals therefore, lead ingots used for coating will be eligible for CENVAT credit. He relied upon the following case laws to argue that his clients are eligible to CENVAT credit: - -
"(i) Birla Corporation Ltd. v. Commissioner of Central Excise, Jaipur -II [ : 2012 (276) E.L.T. 376 (Tri. Del.).
(ii) Century Rayon v. Commissioner of Central Excise, Mumbai -III [2004 (175) E.L.T. 120 (Tri. Mumbai)"
(3.)SHRI S. Shukla, (AR) appearing on behalf of the Revenue argued that lead ingots used for coating are not eligible for CENVAT credit as these are neither inputs nor capital goods. Learned AR also made the Bench go through Para 9 of the OIA Dated 23.01.2013 to argue that lead ingots are similar to welding electrodes used for repair of capital goods and will not be eligible for CENVAT credit as held by the Larger Bench Judgment in the case of Triveni Engg. & Industries Ltd. v. Commissioner : 2005 (186) E.L.T. 158 (Tri. LB) and Andhra Pradesh High Court Judgment in the case of Sree Rayalaseema Hi -Strength Hypo Ltd. : [2012 (278) E.L.T. 167 (AP)].
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