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2015 (9) TMI 1381 - AT - Central ExciseDenial of credit on parts of surface miners used in the mines - Availment of credit on CCTV Cameras used in the Kiln - Whether percentage of eligibility of credit is 75% or 100% on the goods cleared under project imports prior to 1.3.1997 - Held that:- As per the directions of the Hon’ble High Court, Madras, we have examined the admissibility of credit on each of the inputs used in the mines and whether the appellants have their own captive mines. This Tribunal in CCE Trichy Vs The India Cements Ltd.[2015 (9) TMI 1391 - CESTAT CHENNAI] in appellant s own case dealt the issue of use of capital goods and inputs in their own captive mines. Therefore, there is no dispute on the use of parts of surface mines in the capital goods at mines. Further, we find that in the appellant's own case, the Tribunal in the case of CCE Trichy Vs India Cements reported in [2009 (10) TMI 701 - CESTAT CHENNAI] had held that credit on Lubricants used in machinery like surface miner, dumper, etc. in captive mines and are admissible for credit. It is seen that there are a large number of decisions holding the eligibility for capital goods which are used in the mines and outside the factory premises. Appellants are eligible for credit on parts of surface miners. Further, we find that the goods were imported under project import as is evident from the show cause notice and rightly classifiable under 9801 and not under chapter 8430. The act of the department in seeking to classify the goods under Chapter 8430 as against 9801 being clearly traversing beyond the show cause notice, is not sustainable in law. - As regards admissibility of 100% of credit on the project import goods, we find that credit goods were imported in March 1996. We find that on a perusal of D-3 declaration submitted on 22.3.96 which is annexed in page 23 and 24 of the paper book, the capital goods were received in the factory on 22.3.96. Therefore, the date of receipt of capital goods in the appellant's unit is relevant. - appellants are eligible for credit on parts of surface miners, CCTV Cameras installed in the Kiln and they are also eligible for 100% credit on the CVD paid on the goods imported under project imports. Accordingly, the impugned order is set aside
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