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2019 (9) TMI 1194 - AT - Central ExciseCENVAT Credit - inputs/capital goods - inputs and capital goods purchased by the Appellants for setting up its Fly Ash Handling Plant at the site of Chandrapur Super Thermal Power Station (CTSPS), for exclusive use by the Appellants for manufacture of cement in their factory - denial of credit merely on the ground that the said Plant is not situated within the factory premises of the Appellants - period involved is January, 2007 to June, 2007 and July, 2007 to March, 2008. HELD THAT:- Only because the flay ash handling plant is situated 60 kms. away from the factory premises of the Appellant, it cannot be a ground to deny the Cenvat Credit Cenvat credit on capital goods used in the Fly Ash Handling Plant. ‘Captive’ does not mean that it has to be within the factory premises only. In VIKRAM CEMENT VERSUS CCE, INDORE [2006 (2) TMI 1 - SUPREME COURT], the Hon’ble Supreme Court has specifically held that explosives in the mines are used for manufacture of final products and hence Modvat credit cannot be denied even though not used in the factory. The Hon’ble Supreme Court has made it clear that if the capital goods are used by the assessee for their own use, be it inside the factory premises or outside the factory premises, they are entitled for Modvat credit. In the instant matter, the Fly Ash so handled at the plant is used entirely in the appellant’s factory for the manufacture of dutiable products and hence the said plant can be said to be a captive plant and therefore in view of the aforesaid decisions of the Hon’ble Supreme Court, the Appellants are entitle for the Cenvat Credit. Credit allowed - appeal allowed - decided in favor of appellant.
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