TMI Blog2004 (5) TMI 441X X X X Extracts X X X X X X X X Extracts X X X X ..... acts in brief are M/s. India Cements Ltd., Dalavoi (The Respondents in Appeal Nos. E/1392 and 1393/1998 and the appellants in Appeal Nos. E/1659/98 and E/415/2003) are manufacturers of cement falling under Chapter 25 of the CETA, 1985 and have been availing the credit of duty under Rule 57A/57Q of the C.E. Rules, 1944 (as they existed at the material time). In respect of certain credits of duty availed on capital goods under Rule 57Q during the period from 8/1995 to 3/1996, proceedings were initiated against the appellant-company, orders were passed by the adjudicating authority by allowing certain credit and disallowed the rest. On appeal, the Commissioner (Appeals) decided the issues vide Order-in-Appeal Nos. 25 and 26/1998 (TRY), dated 17-3-98 and 139/2003 (SCN) (TRY-II), dated 10-3-2003 resulting in further appeals by both the appellant-company and the Revenue. Commissioner (Appeals) vide Order-in-Appeal Nos. 25 and 26/1998 (TRY), dated 17-3-98 allowed the credit on Bulldozer as material handling equipment to the tune of Rs. 6,60,000/- and Revenue has come in appeal against this portion of the order passed by the Commissioner (Appeals) vide Appeal No. E/1392/1998. Similarly Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as inclusive of mines and for extending Modvat credit on capital goods by treating the factory as independent of mines. Since the Bull Dozer and Loader are material handling equipment they are therefore eligible for credit of duty as capital goods. Ld. Advocate Shri S. Murugappan emphasized that the Loader used for transport of lime-stone, from the mines to the crusher unit and that this fact was on record. In their defence they relied on the decision rendered by CCE v. ACC Ltd. - 2001 (135) E.L.T. 178 wherein it has been held that Bulldozers used as earth moving equipment and for bulk shifting of raw material before feeding the same in grinding or shaping units are capital goods and are covered under Rule 57Q of the CE Rules, 1944. In this connection he invited our attention to Paras 2 and 3 of the said judgments. He also pressed into service the judgment rendered by the South Zonal Bench, Bangalore in the case of Malabar Cements Ltd. v. CCE - 2002 (149) E.L.T. 751 wherein it was held that Modvat credit is eligible on dumpers as they are material handling equipment. Learned Advocate also pressed into service the judgment rendered by the Tribunal in the case of Hindustan Zinc Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eater Tower Structure, Load Centres, etc. and in the Load Centres, Electrical Panels are housed and the entire process of manufacture of cement is controlled from the Control Room. They further explained in detail as to how each of the said equipments comprised in the plant contributed to the various processes of manufacture of cement in a sequence. They also brought on record a certificate issued by the National Council for Cement and Building Materials, New Delhi explaining the technical details of the appellant s plant and function. They also categorically confirmed that appellants had not availed of the credit of duty in respect of that quantity of Rebar Coils, CTD Bars, TOR Steel, Joists and Cement which were used for civil construction work of their office premises, godown, etc. and finally submitted that the Rebar Coils, CTD Bars, TOR Steel, Joists and Cement satisfy the explanation capital goods for the purposes of Rule 57Q of the rules ibid and the appellants would be rightly entitled to the credit of duty. They therefore prayed that the impugned orders may be set aside so far as it relates to the denial of credit of duty on the Rebar coils, CTD Bars, TOR Steel, Joists a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Tribunal in the case of Shakumbari Sugars Allied Industries Ltd. v. CCE - 2002 (148) E.L.T. 1138 wherein it was held that Modvat credit on capital goods namely CI Plates used in base boilers ultimately used in manufacture of sugar, cane/bagasse carriers are entitled for Modvat credit. In the matter Lloyds Metals Engineers Ltd. v. CCE - 2002 (150) E.L.T. 638, ld. Advocate and ld. Consultant submitted that Modvat credit on steel plates and coils, bars, channels and electrostatic precipitator used in the manufacture of storage tanks and conveyance, it was held that credit cannot be denied merely that the impugned goods used in the manufacture of immovable capital goods. Ld. Advocate also relied on the judgment rendered by the Tribunal in the case of United Phosphorous Ltd. v. CCE - 2002 (150) E.L.T. 650 wherein it was held that cement, twisted steel bearing and beams, channels, angles, joints and plates of mild steel are eligible for Modvat credit only if used in foundation or machine for housing protective cover for machinery or apparatus under Rule 57Q of the CE Rules, 1944. They also pressed into service the Tribunal s judgment rendered in the case of Lloyds Metals Eng ..... X X X X Extracts X X X X X X X X Extracts X X X X
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