TMI Blog2014 (12) TMI 407X X X X Extracts X X X X X X X X Extracts X X X X ..... DER Per : S.K. MOHANTY Seeking waiver of pre-deposit of CENVAT credit, interest thereof and penalty, arising as a consequence of the impugned order, the appellant had preferred the stay application along with appeal before this Tribunal. 2. The brief facts of the case, leading to the present appeal are that by the impugned order, the Commissioner (Appeals) has denied CENVAT credit on the tyres for dumpers used for transportation of lime stone from the mines to the factory of the appellant. The reason advanced in the impugned order for denial of credit is that the tyres falling under Chapter 4011.99, used in dumpers of Chapter 87, did not fall under the definition of Capital goods in terms of Rule 2(a) of the CENVAT Credit Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant that tyres for dumpers will qualify as 'inputs' for the purpose of taking CENVAT credit, in view of the broader definition of the said term contained in Rule 2(k) of the CENVAT Credit Rules, 2004. The process of transporting lime stone from mines to the factory is integrally connected with the process of manufacture of the final product within the factory, and as such, the tyres fitted to the dumpers, in my view, will meet the criteria of definition of 'input' for taking CENVAT credit. I also find that the Tribunal decision in the case of Hindustan Zinc Ltd. (Supra), relied on by the appellant is squarely applicable to the facts of the present case, wherein it has been held that CENVAT credit is available on tyres o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd catalysts and similar items. 15. If one goes by the general principles as laid down by the Apex Court in paras 17 and 22 of the decision of the Apex Court in CCE v. Rajasthan State Chemicals - 1991 (55) 444 (S.C.) the goods can be considered as inputs. Similar is the view taken by Calcutta High Court in Singh Alloys and Steel v. CCE - 1993 (66) 594 (Cal.). So I do not see any reason to deny the credit on tyres for LDPT. 6. Under the above circumstances, I am of the prima-facie view that the appellant is made out a strong case for complete waiver of pre-deposit of the adjudged dues. Accordingly, the application for waiver of pre-deposit of amounts involved is allowed and recovery thereof stayed till the disposal of appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
