THE GEN. MANAGER OSWAL OVERSEAS LTD. Vs. CCE

JUDGEMENT

(1.) THIS is an appeal against order -in -appeal dt. 19.3.07 passed by Commissioned Appeals), Meerut -II by which the Commissioner (Appeals) has upheld the Cenvat credit demand of Rs. 124297/ - confirmed against the Appellant and a penalty of equal amount imposed on the Appellant by the Asstt. Commissioner vide order -in -original dt. 18.10.06. The point of dispute in this case is as to whether during the period of dispute i.e. during the period from April'04 to Oct'04, the Appellant is eligible for Cenvat credit in respect of Welding Electrodes used for repair and maintenance of the machinery and asbestos jointing sheets used for sealing the leaking tubes and pipes. The Appellant had initially taken capital Cenvat credit in respect of these two items but subsequently a SCN was issued on 22.11.05 invoking extended period for recovery of Cenvat credit in respect of these two items alongwith interest and imposing penalty on the Appellant.

(2.) HEARD both the sides.

(3.) AS regards the asbestos jointing sheet, the same is used for sealing the leaking pipes and tubes without which the sugar plant cannot function. In my view the ratio of Hon'ble Rajasthan High Court in the case of Hindustan Zinc Ltd. holding that welding electrodes are eligible for Cenvat credit would also apply with equal force in respect of asbestos jointing sheet as the same are also used for maintenance of the sugar mill machinery - sealing the leaking pipes and tubes. I also find that the same view has been taken by this Tribunal in the case of KCP Sugar & Inds. Ltd. v. CCE reported in, 2004 (178) ELT 275. In view of this, I hold that Cenvat credit is available in respect of packing jointing also.