The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Hyderabad recently held that CENVAT credit is available in respect of welding electrodes used for Repair and Maintenance of Machineries as per the amended definition of inputs under CENVAT Credit Rules, 2004.
Appellant is a manufacturer of cement and he has used welding electrodes in repairs and maintenance of the machinery and availed CENVAT Credit on the duty paid on the welding electrodes during the period May, 2013 to May, 2015.
The department took a view that the welding electrodes were not used in or in relation to manufacture of final products and therefore, no credit is admissible as they do not qualify to be called as inputs under the CENVAT Credit Rules, 2004.
