CESTAT Allows Cement Trader to Claim CENVAT Credit on Welding Electrodes

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) in Delhi have made a ruling that cement manufacturers can claim CENVAT credit on welding electrodes used as inputs in the production of cement and clinker.

Inputs Used in Manufacture of Final Products

According to sub-rule 4 of Rule 57-A of the Central Excise Rules, 1944, cenvat credit is allowed on inputs used in the manufacture of final products. This includes inputs used directly or indirectly in the manufacturing process.

CENVAT Credit Dispute

The case involved a cement manufacturer in Chittorgarh who used welding electrodes for repair and maintenance of their plant and machinery. Initially, a show-cause notice was issued disallowing CENVAT credit on welding electrodes. However, the demand was dropped by the Assistant Commissioner.

Tribunal’s Decision

The tribunal ruled in favor of the cement manufacturer, stating that they are entitled to claim CENVAT credit on welding electrodes used as inputs in the production process.

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

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Published by Arpit Kulshrestha

Arpit Kulshrestha specializes in financial services, taxation, GST, and IT. Provides in-depth and extensive articles. Works with SAG Infotech to produce effective articles on taxation and IT software. Articles are based on observations and research.