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2015 (9) TMI 1391 - CESTAT CHENNAIDenial of modvat credit - penalty under erstwhile Rule 57U(6) read with 173Q(bb) of CER - Held that:- TN Govt had granted mining lease in favour of the respondent for the period of 30 years and 20 years respectively subject to fulfilment of various conditions as set out in the G.O itself and also subject to the payment of royalty and other rents etc. In terms of above G.O's, appellants have executed lease deed dated 17.6.95 and 5.3.92. On perusal of the lease deed, I find that the rights, liabilities, restrictions of use of mines and the mode of payment are set out in the agreement. Therefore, it is clearly established beyond doubt that respondents had captive mining lease during the relevant period from 8.5.1991 onwards - appellants availed the credit on lubricating oils for the use in the manufacture at their captive mines and by following the ratio of the Hon'ble Supreme Court in the case of Vikram Cement Vs CCE (2006 (2) TMI 1 - Supreme court), the appellants are eligible for cenvat credit on capital goods and at captive mines. Accordingly, the impugned order is upheld and Revenue appeal is rejected subject to the condition that mining products in dispute are not cleared to outsiders which may be verified by the Revenue - Decided against Revenue.
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