COMMISSIONER OF CENTRAL EXCISE & ST Vs. BHUSHAN STEEL LTD.
LAWS(CE)-2015-1-33
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on January 20,2015

Commissioner Of Central Excise And St Appellant
VERSUS
Bhushan Steel Ltd. Respondents




JUDGEMENT

Ashok Jindal, Member (J) - (1.)THE Revenue is in appeal against the impugned order wherein the inputs Cenvat credit on welding electrodes has been allowed by the learned Commissioner (Appeals) being capital goods during the period April, 2011 to February 2012.
(2.)AS the welding electrodes are not capital goods nor inputs, therefore, they are not entitled to take Cenvat credit thereon relying on the decision of Hon'ble Andhra Pradesh High Court in the case of Sree Rayalaseema Hi -Strength Hypo Ltd. v. CCE, Tirupati reported in [ : 2012 (278) ELT 167 (AP)].
Learned AR submits that in the case of Sree Rayalaseema Hi -Strength Hypo Ltd. (Supra), the Hon'ble High Court held that Cenvat credit on welding electrodes which were used for repair and maintenance of plant and machinery, do not qualify as inputs. Therefore, Cenvat credit cannot be claimed thereon under Rule 2(k) of Cenvat credit Rules, 2004. In these circumstances, he prayed that impugned order to be set aside. Other case laws relied upon by learned AR are as under:

"i) Llyod Metals & Engineers Ltd. v. Union of India [2010 (252) ELT 355 (Bom)];

ii) CCE & ST Bhubaneshwar II v. MSP Steel Pvt. Ltd. [2009 (248) ELT 845 (Tri -Kolkata)];

iii) SAIL v. CCE, Ranchi [2008 (222) ELT 233 (Tri -Kolkatta)

iv) Steel Authority of India Ltd. v. Commissioner [2008(229) ELT A 127 (SC)]."

(3.)ON the other hand, learned Counsel for the respondent submits that this Tribunal has taken into consideration on the decision of Hon'ble High Court of Andhra Pradesh in the case of Sree Rayalaseema Hi -Strength Hypo Ltd. and in the case of The Oudh Sugar Mills Ltd. v. CCE, Lucknow [2014 -TIOL -1474 -CESTAT -DEL] and held that Cenvat credit on welding electrodes which has been used in repair and maintenance of plant and machinery is admissible. He further submits that the issue has been decided by the Hon'ble High court of Rajasthan in the case of Hindustan Zinc reported as, 2007 (214) ELT 510 (Raj)] which has been affirmed by Hon'ble Apex Court reported in [2007 (214) ELT A 115 (SC)]. He further submits that said issue came up before Karnataka High Court in the case of Alfred Herbert (India) Ltd. [2010 (257) ELT 29 (Kar)] wherein the Hon'ble High Court after considering the decision of Apex Court in the case of Hindustan Zinc held that Cenvat credit is admissible. He also relied on the decision of Ambuja Cement Eastern Ltd. [2010 -TIOL -309 HC -Chhattisgarh -CX). Therefore, he prayed that impugned order is to be upheld.
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