Case Law Details
J.K. Cement Works Vs Commissioner Central Excise (Rajasthan High Court)
The Rajasthan High Court, in the case of J.K. Cement Works Vs Commissioner Central Excise, addressed an important issue related to the applicability of CENVAT Credit on Oxygen and Acetylene Gas used for repairs and maintenance of plant and machinery.
The case was built upon the basis of a judgment passed in the Hindustan Zine Ltd. Vs. Union of India & Ors. case, where it was ruled that these gases can be considered as components/spares/accessories of welding machines.
The counsel for J.K. Cement Works argued that as the gases were used for producing and processing of goods, bringing about change in any substance for the manufacturing of the final product, they could be deemed as capital goods and thus qualify for CENVAT Credit.
However, the revenue’s counsel pointed out that despite a Special Leave Petition (SLP) against the Hindustan Zine Ltd.’s case being dismissed as withdrawn, the Supreme Court had left the question of law open. They argued for waiting for the Supreme Court’s decision on similar pending SLPs.
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