HINDUSTAN ZINC LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS appeal, by the Assessee, has been filed against the Order of the Tribunal dated, 26th July, 2005,dismissing the same, by relying upon a larger Bench Judgment of the Tribunal, in Jaypee Rewa Plant v. CCE reported in , and thereby upholding the disallowance of MODVAT/ CENVAT credit.

(2.) THE necessary facts are, that the Assessee was issued a Show Cause Notice, on the ground, that Assessee has availed of MODVAT/CENVAT credit on welding electrodes, during June, 2003 to March, 2004, treating the same as capital goods, whereas the same appeared not to be covered under the definition of capital goods.

(3.) LEARNED Dy. Commissioner confirmed the demand, by holding, that the welding electrodes do not fall under any of the heads mentioned in Rule 2. Since goods are used for repairing/maintenance of the capital goods, are not eligible for CENVAT credit.