Title: Hindustan Zinc Ltd. Versus C.C.E.
Decided on: 11th July, 2023
D.B. Central/excise Appeal No. 4/2010
CORAM: HON’BLE Justice YOGENDRA KUMAR PUROHIT, HON’BLE Justice VIJAY BISHNOI
Introduction:
This appeal arises from an application (Inward No.1/23) filed by the appellant, Hindustan Zinc Ltd., requesting a decision on their appeals in accordance with a judgment dated 1.7.2008 issued by the Division Bench of this Court in Hindustan Zinc Ltd. vs. Union of India & Ors. The appeals pertain to the eligibility of CENVAT credit for welding electrodes used in the repair, maintenance of plant and machinery, and other welding work in the building area. The application raises questions concerning the classification of welding electrodes as capital goods or inputs under the CENVAT Credit Rules.
Facts of the Case:
The appellant company, Hindustan Zinc Ltd., had filed appeals challenging the denial of CENVAT credit for welding electrodes used in repair, maintenance of plant and machinery, and welding work in the building area.
Judgment:
In the previous judgment in Hindustan Zinc Ltd.’s case, this Court had determined that welding electrodes used for the repair and maintenance of plant and machinery could qualify for CENVAT credit as both capital goods and inputs. The Court noted that the language of the relevant provisions should be interpreted liberally, and any goods integral to the manufacturing process, including those used in maintenance and repair, should be considered for CENVAT credit.
The Court also referred to judgments from the Hon’ble Supreme Court and other precedents to support its interpretation that goods connected to the manufacturing process should be eligible for credit. Consequently, the Court held that the questions framed were to be answered in favor of the appellant, Hindustan Zinc Ltd.
In light of this precedent and the fact that the Hon’ble Supreme Court had dismissed the SLP against the previous judgment, the Court concluded that the appeals should be allowed in accordance with the judgment in Hindustan Zinc Ltd.’s case.
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Written by Yagya Agarwal
