Customs, Excise and Gold Tribunal - Delhi
Cce vs Nahar Sugar And Allied Industries Ltd. on 24 June, 2005
Equivalent citations: 2005(102)ECC383
ORDER P.S. Bajaj, Member (J)
1. In this appeal, the appellants have contested the correctness of the impugned order vide which the Commissioner has allowed the Mod vat credit of Rs. 57,475 to the respondents on welding electrodes and D.A. gases used for repairing of the machine and machinery in the factory.
2. The law regarding the availability of Modvat credit to the assessee on the welding electrodes and D.A. gases used for maintenance of the machines is well settled. In jaypee Rewa Plant v. CCE, Raipur, 2003 (88) ECC 503, the Larger Bench of the Tribunal has held that CENVAT credit is not available on these goods used for maintenance of machines. Similar in CCE, Belgaum v. Panyam Cements and Minerals Industries Ltd., 2003 (54) RLT 557, it has been observed by the Tribunal after following the ratio of law laid down in CCE Belgaum v. Bellary Steels and Alloys Ltd., 2001 (130) ELT 873, that the Modvat credit is not available to the assessee on the welding electrodes and gases used for maintenance of machines and machinery. Therefore, the impugned order which runs contrary to the law laid down by the Tribunal in the above referred cases cannot be sustained and is set aside. Consequently the appeal of the Revenue is allowed with consequential relief as per law.