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2016 (8) TMI 1127 - AT - Central ExciseDenial of CENVAT credit on capital goods - tyres and dumpers - “capital goods” in terms of Rule 2(a) of Cenvat Credit Rules, 2004 - whether denial of cenvat credit on the ground that tyres and dumpers are not capital goods justified? - Held that: - the decision in the case of MADRAS CEMENTS LTD. Versus COMMISSIONER OF C. EX., CHENNAI [2010 (7) TMI 179 - SUPREME COURT] relied upon where it was held that capital goods used in captive mines are eligible for Cenvat Credit. The respondent manufacturer is having their own captive mine which constitute one integrated unit. The factory of manufacturer should, by extension, mean the captive mine of the manufacturer from where the ores are sourced. The material handling equipments are for moving the raw material which are integrally connected with the manufacture of the final product. The Board vide Circular dated 2.12.1996 clarified that all parts, components, accessories which are to be used with capital goods and classifiable under any Chapter heading are eligible for Modvat Credit. It is to be noted that the application of scope of capital goods are not different from the erstwhile Modvat Rules in the present Cenvat Credit Rules, 2004. The decision in the case of MALABAR CEMENTS LTD. Versus COMMISSIONER OF CENTRAL EXCISE, COCHIN [2001 (12) TMI 737 - CEGAT, BANGALORE] where the Tribunal allowed the cenvat credit on dumpers as capital goods under erstwhile Rule 57Q [similar to Rule 2(a) of Cenvat Credit Rules, 2004]. CENVAT credit allowed on tyres and dumpers - appeal rejected - decided against Revenue.
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