M/S. Oswal Denims vs C.C.E. & S.T. Chandigarh-Ii

Customs Excise and Service Tax Appellate Tribunal15 January 2015

CitationAppeal No. E/1971/2012-EX(SM)

Ratio decidendi

The rule this decision rests on

The question is whether Cenvat credit is available on HR plates/sheets that were used in the repair and maintenance of capital goods, where the authority denied it relying on a CBEC instruction. The Tribunal holds that such credit is allowable, following its earlier decision in ITC Ltd. v. C.C.E. Salem, and that the impugned order denying it cannot stand.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

IN THE CUSTOMS, EXCISE AND SERVICE TAXAPPELLATE TRIBUNAL, NEW DELHIPRINCIPAL BENCH, COURT NO. IIAppeal No. E/1971/2012-EX(SM)

[Arising out of Order-in-Appeal No. 156/CE/Appl/CH-II/2012 dated 30.03.2012 by the Commissioner of Central Excise (Appeals), Chandigarh].

For approval and signature:

Honble Mr Ashok Jindal, 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?

2 Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?

3 Whether Their Lordships wish to see the fair copy of the Order?

4 Whether Order is to be circulated to the Departmental authorities?

M/s. Oswal Denims .Appellants

Vs.

C.C.E. & S.T. Chandigarh-II .Respondent

Appearance:

Shri Ravinder Singh, DR for the Appellants

Shri R.K. Mishra, Advocate for the Respondent

CORAM:

Hon'ble Shri Ashok Jindal, Member (Judicial)

Date of Hearing: 15.01.2015

FINAL ORDER NO.50050/2015-EX(SM)

Per Ashok Jindal:

The appellant is in appeal against the impugned order for denial of Cenvat Credit on HR strips which were used by the appellant for repairs and maintenance of capital goods. The Ld. Counsel for the appellant submits that the issue has been settled by Honble High court of Rajasthan in the case of Hindustan Zinc Ltd. Vs. UOI reported in 2007 (214) E.L.T. 510 (Raj.) which has been affirmed by the Honble Supreme Court reported in 2007 (214) E.L.T. 510 (Raj). Said decision was followed by this Tribunal in the case of ITC Ltd. Vs. C.C.E. Salem reported in 2012 (285) E.L.T. (Tri-Chennai). Therefore, Cenvat Credit may be allowed.

2. On the other hand Ld AR relied on the instructions issued by the CBEC Circular vide instruction no.267/11/2010-CE dated 08.07.2010.

3. Heard the parties.

4. Considering the facts there is no dispute that these HR plates / sheets have been used by the appellant for repair and maintenance of capital goods. Therefore, relying on the decision of ITC Ltd. (Supra), I hold that appellant is entitled to take Cenvat Credit on HR sheets / plates which were ultimately used in the repair and maintenance of capital goods. In these terms, I set aside the impugned order and allow the appeal with consequential relief if any.

(Dictated and pronounced in the open court)

(Ashok Jindal) Member (Judicial)

Bhanu

E/1971/2012-EX(SM)

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