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2015 (2) TMI 835 - HC - Central ExciseModvat credit on capital goods used in captive mines - Captive mines/ Integrated mines or other mines - Held that:- The Apex Court in Vikram Cement case [2006 (2) TMI 1 - Supreme court], in para-5 of the said judgment, observed that for availing Modvat credit on capital goods, if the mines are captive mines, they constitute one integrated unit together with the concerned cement factory. Therefore, Modvat/Cenvat credit on capital goods will be available to the assessee so long as the goods are used by the assessee. However, where the goods are supplied to other cement companies of different assessees, the credit is not available. The abovesaid view of the Supreme Court was reiterated in a subsequent decision in the case of Madras Cements Ltd. [2010 (7) TMI 179 - SUPREME COURT]. In view of the above law laid down by the Supreme Court, the question of fact as to whether the capital goods were utilised in the own factory or in an integrated mine of the assessee or in other mines is the core issue to be decided. From a perusal of the order passed by the Tribunal, it is evident that the Tribunal has not gone into the issue whether the capital goods were utilised in the own factory of the assessee or in an integrated mine of the assessee or in other mines. That being the core issue, there being no finding on the said aspect by the Tribunal, the orders of the Tribunal in disallowing credit on capital goods to the assessee cannot be sustained. Therefore, this Court, without going into the questions of law as raised by the appellant, is inclined to set aside the said orders and remand the matters back to the Original Authority for reconsideration. Decided in favour of appellant.
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