The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has ruled that cement manufacturers are authorized to cenvat credit on welding electrodes as inputs used in the manufacture of final products, namely cement and clinker.
The bench of Binu Tamta (Judicial Member) has marked that according to sub-rule 4 of Rule 57-A of the Central Excise Rules, 1944, the credit of prescribed duty is permitted in respect of two categories of inputs, namely (i) inputs used in the manufacture of final products and (ii) inputs used in or concerning the manufacture of final products, whether directly or indirectly, and whether contained in the final product or not.
The taxpayer/applicant is a manufacturer of cement and clinker with manufacturing plants and machinery in Chittorgarh. They have obtained welding electrodes for repair and maintenance of plant and machinery, which are used for the manufacture of the products, i.e., cement and clinker. An SCN was issued that welding electrodes cannot be taken into account input, and hence, CENVAT credit was not available on them.
The proposed demand in the SCN has been dropped by the Assistant Commissioner.
A petition was been filed via the department contending that the CENVAT credit is not admissible on welding electrodes which are been utilised to repair and maintenance of plants and machinery and that these activities are not related to the manufacture of the final products. The petition was permitted and the order was passed affirming the demand as per the SCN.
Concerning the admissibility of the CENVAT credit, the problem has been raised on the welding electrodes as inputs.
While permitting the appeal the tribunal ruled that the appellant is qualified to get the advantage of CENVAT credit.
| Case Title | M/s. Nuvoco Vistas Corporation Limited Vs. Commissioner of Central Excise and CGST |
| Final Order No. | 56022/2024 |
| Date | 18.07.2024 |
| Counsel For Appellant | Shri Saurabh Suman Sinha and Ms.Chitra Y. Parande, Advocates |
| Counsel For Respondent | Shri Rohit Issar |
| CESTAT Delhi | Read Order |
