TMI Blog2001 (10) TMI 786X X X X Extracts X X X X X X X X Extracts X X X X ..... .L.T. 3 (S.C.) = 2001 (98) ECR 193 (S.C.)], the stay applications and appeals are taken up together for final disposal as per law. 2. E/710-712/2001/MAS The issue involved in all these 3 appeals is pertaining to grant of Modvat credit on the HDPE bags used for dispatch of reprocessed cement. E/713-715/2001 E/719-720/2001/MAS These appeals pertain to non grant of Modvat credit on explosives and motors used in the mines for excavating lime stones which in turn is used as raw material in the manufacture of final product, Cement. E/716-718/2001/MAS These appeals pertain to non grant of Modvat credit on lubricating oils used in the excavating of lime stones in the mines. E/720/2001/MAS This pertains to denial of Modvat credit o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titled for Modvat credit on conveyor belts which is both used in the cement factory and mines, since the lime stones is taken from the mines to the factory. There are other capital goods which are used in the mines and all these capital goods though used exclusively in the mines are also helping in or in relation to the manufacture of final product. Therefore, Modvat credit on such capital goods has also to be given on the same premise as the Hon ble Apex Court has allowed them Modvat for expolsives used in the excavation of lime stones. The list of capital goods which are used exclusively in the mines is like AC Motors, cables, grinding wheels, machine parts, gear box, roller chains, and hydraulic jacks etc. 4. Heard ld. DR, Shri Jayacha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order in appeal Nos. 14, 15, 16/2001 as a result, the Appeal Nos. E/710, 711, 712/2001 are dismissed. 6. As regards explosives used in the mines, the Hon ble Apex Court judgment in the case of Jaypee Rewa Cement v. CCE, M.P. reported in 2001 (133) E.L.T. 3 (S.C.) has held that Modvat credit on explosives is permissible since they are inputs on which duty has been paid by the appellants, falling under Chapter heading 36 of the Central Excise Tariff Act which are used in the mines in order to excavate lime stones as they are used as raw material in the manufacture of final product, namely cement. The Hon ble Apex Court has reversed the decision of the Larger Bench of the Tribunal in the case of Jaypee Rewa Cement Ltd. reported in [2000 (11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and are not relatable to the final product, cement. Therefore, Modvat credit on lubricating oil used exclusively in the mines is not permissible. Therefore, these three appeals are rejected. 8. In so far as Appeal No. E/720/2001 arising out of order in appeal No. 1/2001 on the capital goods which are used exclusively in the mines (except parts of conveyor belts since the conveyor belt is used both in the mines as well as in the factory). We, therefore, reject the Modvat credit on the capital goods which are exclusively used in the mines and allow the Modvat credit only on parts of the conveyor belts which are used both in the mines and at the factory s end. This Order-in-Appeal No. 1/2001 is, therefore, modified to this extent. 9. All ..... X X X X Extracts X X X X X X X X Extracts X X X X
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