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2021 (7) TMI 294 - AT - Central ExciseCENVAT Credit - capital goods - pipeline used to connect the SBM with the refinery - difference between Cenvat Credit Rules and the Modvat scheme - denial of Cenvat credit on the ground that the pipeline is located outside the factory premises and the Cenvat Credit Rules do not permit Cenvat Credit of such capital goods as are used outside the factory premises - HELD THAT:- Hon’ble Apex Court in the case of Vikram Cement [2006 (1) TMI 130 - SUPREME COURT] has held that the Cenvat Credit Rules and the Modvat scheme are not different and therefore the decision made in the context of Modvat would be equally applicable to Cenvat Credit Rules. It is seen that the decision in the case of Vikram Cement was given by comparing the Modvat rules with the provision of Cenvat credit introduced vide Notification No 27/2000- CE(NT) dated 31.03.2000 by introducing rule 57AA to rule 57AK in Central Excise Rules 1944. It is seen that Hon’ble Apex Court in the case of Vikram Cement did not have any occasion to examine the provisions of Modvat Scheme with the Cenvat Credit Rules, 2001, or Cenvat Credit Rules, 2002, or Cenvat Credit Rules, 2004. Therefore the argument of the Learned Counsel that the decision made with reference to earlier rules will also be applicable to the disputes involving of subsequent Cenvat Credit Rules, is misplaced. The Cenvat Credit Rules have evolved over the period 2000 to 2004 and the ratio of the decision made with reference to ‘Cenvat’ introduced vide Notification No 27/2000(NT) cannot be straight away applied to the subsequent rules without due examination - Hon’ble Apex Court never had the occasioned to compare the Modvat Rules with Cenvat Credit Rules, 2004 under which the present dispute lies. This fundamental issue if the area under pipeline and SBM lies in the factory premises or otherwise is also pending before original adjudicating authority. Thus, the impugned order is set aside and matter is remanded to original adjudicating authority to decide afresh, after a decision is taken on the issue of registration which has been remanded by tribunal to the original Adjudicating Authority. Appeal allowed by way of remand.
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