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2006 (4) TMI 422 - AT - Central ExciseCenvat/Modvat credit - Inputs - Light Diesel Oil/Furnace Oil used in Power Plant situated 12 kms. away from clinker unit - Steel Plates, H.R. Plates, H.R. Coils, Corrugated sheets, Flats/Angles, Reinforcing bar, Beam/Channels Iron & Steel - Galvanized Structure Rolling mills - Welding Electrodes - denial on the various grounds and few of them being inputs not used in the factory, no evidence produced to show that they are using capital goods in respect of transmission line and they are not capital goods etc. HELD THAT:- The issue regarding consumption of Steel Plates, H.R. Plates, H.R. Coils, Corrugated sheets, Flats/Angles, etc. in the manufacture of capital goods, is remanded to be decided by the adjudicating authority, afresh after granting the appellants an opportunity of personal hearing. Light Diesel Oil/Furnace Oil used in Power Plant situated 12 kms away from clinker unit - HELD THAT:- The Tribunal in the case of HALDIA PETROCHEMICALS LTD. VERSUS COMMISSIONER OF C. EX., HALDIA [2005 (1) TMI 306 - CESTAT, NEW DELHI] settled that the credit of duty paid on Light Diesel Oil/Furnace Oil is admissible, if they are sent to job workers and electricity is brought back we find that, in the case before us the electricity is generated by use of Light Diesel Oil/Furnace Oil in their own unit, and we do not find any reason to deny the credit to appellants on this point. Galvanized structure - HELD THAT:- This item is used as part of transmission line i.e. line which brings power to the factory from power plant. The issue is covered by the decision of the Hon’ble Supreme Court in the case of BIRLA CORPORATION LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE [2005 (7) TMI 104 - SUPREME COURT] and followed in COMMISSIONER OF CENTRAL EXCISE, NAGPUR VERSUS MANIKGARH CEMENT LTD. [2005 (8) TMI 119 - SC ORDER]. In both the above cases the Apex Court has held that spares used for the purpose of transporting the crushed limestone from the mines situated away from the factory are entitled to Modvat credit. The said ratio squarely applies in this case as these spare are used in transmission line which brings power to the power plant. Appeal allowed in part.
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