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TMI Blog2004 (4) TMI 492X X X X Extracts X X X X X X X X Extracts X X X X ..... 10-1997. 4. Shri Chowdhary pleaded that that the amount of Modvat credit which is being challenged by them falls into three categories namely (i) on capital goods used in the factory, (ii) on capital goods which are partly used in the factory and partly used in mines, (iii) on capital goods used in mines. He pleaded that in view of the Tribunal Larger Bench decision in case of Madras Cement Ltd. v. Commissioner of Central Excise, Madras reported in 2003 (158) E.L.T. 293, he is not pressing for Modvat credit on capital goods used exclusively in mines. Therefore, he is limiting his arguments only on the goods which are used within the factory of the manufacturer and on the capital goods which are partly used in the mines and partly used in the factory. 5. The Consultant pleaded that the item-wise position of the capital goods used in the factory is as under :- (i) BULLDOZER (USED IN PLANT) - He pleaded that the Bulldozer is a powerful equipment used in the Plant for dozing the Clinker into the chutes from which the Clinker is passed on to the Cement Mills hoppers for further processing and also to mix up the hot and cold clinker at the Clink ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v) NALCOOL 2000 - Shri Chowdhary stated that that Nalcool 2000 is chemical used in DG sets to prevent scaling around cylinder liners so that heat transfer will be proper and engine can be loaded to its full load. This chemical also avoids corrosion on the cylinder liners. Power from DG sets is used for manufacture of final product i.e. Clinker/Cement and therefore credit may be allowed. He relied upon the following decisions - (i) CCE, Coimbatore v. Jawahar Mills Ltd. - 2001 (132) E.L.T. 3 (S.C.) (ii) Maharashtra Scooters Ltd. v. CCE, Pune - 1999 (112) E.L.T. 351 (T) (iii) CCE, Indore-II v. Diamond Cement - 2001 (127) E.L.T. 777 (T) (iv) India Cements Ltd., Chilamkur in CEGAT Final Order No 1588/2001, dated 1-8-2001 (v) SILICON FLUID - Ld. Consultant pleaded that Silicon Fluid is used to arrest the leakages of coolent in cylinder liners and engine blocks of DG sets. It is an adhesive of 0 Ring used in the Cylinder liners which is very important in generation of power by DG sets. The DG power is being used for manufacture of final product i.e. Clin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for Modvat credit. Regarding credit on Sodium Silicate, the ld. JDR pleaded that it is not specified under Rule 57Q and it falls under Chapter 28 of the Central Excise Tariff Act, 1985. Same is the position in respect of Nalcool 2000 and Silicon Fluid as these do not fall under Rule 57Q as capital goods nor there are eligible input used for manufacture of cement under Rule 5 7A. 8. The ld. JDR further pleaded that wherever goods are partly used in the factory and partly used in mines, Modvat credit cannot be granted in view of the Apex Court decision in case of Madras Cement Ltd. v. CCE, Hyderabad, reported in [2003 (158) E.L.T. 293 (T) = 2003 (56) RLT 978] and in case of CCE, Coimbatore v. Jawahar Mills Ltd. reported in 2001 (132) E.L.T. 3 (S.C.) 9. We have carefully considered the submissions made by both the sides. The dispute involved in these appeals is for period from January 95 to July 96. The appellants have claimed that Modvat credit on Bulldozer used in the plant has been wrongly denied by the Department. They claimed that Bulldozer is used in the factory for handling raw materials in relation to the manufacture of the finished goods. We find that the Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-heading 8607.00 and it is not eligible capital goods under Rule 57Q either in Notification No. 4/94-C.E. (N.T.), 1-3-1994 as amended by Notification No. 11/95-C.E. (N.T.), dated 16-3-1995 or under Notification No. 14/96-C.E. (N.T.), dated 23-7-1996. The appellants claimed that locomotive engine is used for handling materials like Coal, Bauxite and Iron Ore and also dispatch of Cement by rakes. Therefore, it is capital goods and in view of the explanation 1(b) of Rule 57Q of Central Excise Rules, 1944, its parts are eligible for credit. We find that locomotive engine is not a material handling equipment within the factory of manufacturer like Bulldozers, etc. nor it is covered by explanation 1(a) below Rule 57Q(1) of the Central Excise Rules, 1944. Therefore credit of duty on Spares of Locomotive Engine has been correctly denied by the Lower Authorities. 11. Modvat credit on Sodium Sylicate has been denied to the appellants on the grounds that the same is chemical falling under sub-heading 2839.10/2942.00 and the goods falling under Chapter 28/29 are not eligible capital goods. According to the appellants, Modvat credit is allowable as Sodium Sylicate is used to arrest the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le on spares to dumper. This was contested by the Revenue on the ground that the Dumpers are used in the mines and these are not eligible for Modvat credit and therefore, on the spares also credit is not allowable. The Revenue relied on the decision of Larger Bench of the Tribunal in the case of Madras Cement v. CCE, Hyderabad reported in [2003 (158) E.L.T. 293 (T) = 2003 (56) RLT 978]. We have carefully considered the submissions made by both the sides and we find that in case of Malabar Cement Ltd. v. Commissioner of Central Excise, Cochin [2002 (149) E.L.T. 751], this Bench of the Tribunal has categorically held that dumpers used for bringing blasted limestone from the quarry to the crusher of cement plant being integrally connected with the process of manufacture were eligible for Modvat credit under Rule 57Q. The Department's appeal filed against this judgment was dismissed by the Supreme Court after condoning the delay after considering the facts of the case 2003 (153) E.L.T. A94 (S.C.). In view of the decision of the Supreme Court it has reached finality. Accordingly the credit is allowed on the Spares to Dumper. 15. The appellants have not pressed for credit on the go ..... X X X X Extracts X X X X X X X X Extracts X X X X
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