Custom, Excise & Service Tax Tribunal
M/S Triveni Engineering & Industries ... vs Commissioner Of C.Ex., Meerut I on 7 January, 2016
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL,
REGIONAL BENCH : ALLAHABAD
Ex.Appeal Nos.54617,54618/14
Arising out of OIA Nos.08 & 09-CE/APPL/MRT-I/2014 dated 13/01/2014 both passed by the Commissioner (Appeals), Central Excise & Customs, Meerut.
For approval and signature:
HONBLE MR. ANIL CHOUDHARY, MEMBER (JUDICIAL)
1. Whether Press Reporters may be allowed to see
the Order for publication as per Rule 27 of the
CESTAT (Procedure) Rules, 1982? : No
2. Whether it should be released under Rule 27 of the
CESTAT (Procedure) Rules, 1982 for publication
in any authoritative report or not? : Yes
3. Whether His Lordship wishes to see the fair copy
of the Order? : Seen
4. Whether Order is to be circulated to the Departmental
Authorities? : Yes
M/s Triveni Engineering & Industries Ltd.
APPELLANT(S)
VERSUS
Commissioner of C.Ex., Meerut I
RESPONDENT (S)
APPEARANCE Shri R. Krishnan, Adv. for the Appellant (s) Shri D. K. Deb, Asstt.Commr. (A.R.) for the Respondent CORAM:
HONBLE MR. ANIL CHOUDHARY, MEMBER (JUDICIAL) DATE OF HEARING & PRONOUNCEMENT : 07.01.2016 ORDER NO.__________________________ Per Mr. Anil Choudhary :
In both the appeals, the appellant, M/s Triveni Engineering & Industries Ltd., manufacturing of sugar and molasses, is in appeal against the Order-in-Appeal dated 13.01.2014 alleging against them that the Cenvat credit was availed wrongly on the items, like, paints, thinner, rustex, loctite, shrink-komp and STD.D.A utilized in repairing and maintenance of plant and machinery.
2. The ld. Counsel appearing for the appellants, points out that the sugar industries is a seasonal industry and after the crushing season there is gap of about six months before the next season begins. During this period, all the plant and machineries are dismantled for repairing and maintenance and also for proper upkeep to protect from rusting. Accordingly, the appellant used the inputs, namely, paints, thinner, rustex, loctite, shrink-komp and STD.D.A, for painting and repairing the plant and machineries so as to protect from rusting and keep in working condition for the next crushing season. Shrink-komp is a quick setting cement used in the foundation of turbines, cutter etc. Loctite is used during the repair and maintenance of machinery for welding pipes, machinery and its component parts. The ld.Counsel refers to the definition of input under Rule 2 (f) of the CCR, wherein input means and includes all goods used in or in relation to the manufacture of final products whether directly or indirectly and contained in the final product or not and in case of items, like, lubricating oils, greases, cutting oils, coolants, accessories of final products, which are cleared along with the final products, goods used as paint or as packing material or as fuel used in the manufacture of final product or for any other purpose within the factory of production. He further points out that in the OIO wherein in Paragraphs 5.6 and 5.10, the Assistant Commissioner of Central Excise, has recorded that these items in question have been used in repairing and maintenance of plant and machinery and in civil work of foundation of turbine etc. The ld.Counsel further relies on the rulings of this Tribunal in the cases of (i) Samtel Colour Ltd. Vs. CCEx., Ghaziabad : 2005 (192) ELT 372 (Tri.-Del.), (ii) Ruchi Health Foods Ltd. Vs. Commr. of Central Excise, Chennai : 2007 (218) ELT 716 (Tri.-Chennai), (iii) Commr. of Central Excise, Visakhapatnam Vs. Nagarjuna Agrichem Ltd. : 2003 (160) ELT 572 (Tri.-Bang.), wherein paint used on floor of production of plant to ensure dust free atmosphere for production have been held to be eligible input in the manufacture of dutiable output. Accordingly, he prays for allowing the appeal.
3. The ld.A.R. for the Revenue reiterates the findings of the impugned order. He further states that the use of cement for reinforcement of foundation is certainly not eligible.
4. After considering the rival contentions, I hold that all the items in question except shrink-komp, are eligible input. In view of the admitted facts that these items have been used for maintenance of plant and machineries, which is essential to keep the machineries available for production for the next crushing season. Accordingly, I allow the appeals in part and set aside the impugned orders. The appellant will be entitled to consequential benefit in accordance with law.
(Dictated and pronounced in the open Court) Sd/ (ANIL CHOUDHARY) MEMBER (JUDICIAL) mm 4 Ex. Appeal Nos.54617,54618/14