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Madras Cements Ltd. Versus Commissioner of Central Excise, Trichirapalli

2015 (9) TMI 1211 - CESTAT CHENNAI

Denial of MODVAT Credit - denial of credit on the ground that mines are not part of the appellant's premises and on the other ground that these goods are not covered in list of captive mines and listed in Rule 57B (2) - Held that:- Regarding parts of machineries as at Sl.No.3, 4 & 5 the Emitting Electrodes are made up of steel and are used in Electrostatic Precipitator Classifier in Pollution Control Equipment; Classifier Housing is a stationery part and is located at top of the vertical mill wh .....

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se of CCE Hyderabad Vs India Cement (2004 (12) TMI 187 - CESTAT, BANGALORE) and ACC Ltd. Vs CCE (2005 (1) TMI 558 - CESTAT, NEW DELHI) wherein the Tribunal consistently held that parts and accessories are eligible for capital goods credit.

In the appellant's own case in the case of Madras Cements ltd. Vs CCE Trichy (2006 (5) TMI 303 - CESTAT, CHENNAI) this Bench of the Tribunal has already disallowed the credit on steel wires which has attained finality. Therefore, this Bench cannot i .....

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gainst Order-in Appeal dt. 16.10.2003 passed by Commissioner of Central Excise (Appeals), Chennai. 2. The brief facts of the case relates to denial of modvat credit on various items under erstwhile Rule 57Q of Central Excise Rules where the adjudicating authority in his order dt. 27.6.2003 disallowed modvat credit of ₹ 20,71,668/- in respect of capital goods and allowed modvat credit of ₹ 1,35,25,398/- on various items. On appeal, the Commissioner (Appeals) partly allowed the appeal .....

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llant reiterates the grounds of appeal and submits that the period involved in this credit relates to April and May 1997. He submits that before filing of appeal before Tribunal, they have reversed credit of ₹ 14,65,570/- on 26.2.98 as evident from Tribunal's stay order dt. 2.9.2004. He submits that major amount involved is in respect of items Dumpers and Loaders. 4. The Commissioner (Appeals) has disallowed credit on dumpers and loaders on the grounds that these are used in mines and .....

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l goods under Rule 57Q, they are eligible for credit under erstwhile Rule 57B of Central Excise Rues, 1944. He drew our attention to sub-rule (2) and clause (i) of Rule 57B and submits that the said rule clearly stipulates that machines which are not defined in Rule 57Q are eligible for credit under Rule 57E. 4.1 Regarding inputs, Emitting Electrodes classifiable under 7320.00, Steel Casing classifiable under 7308.90 and Classifier Housing classifiable under Heading 8429.00, he submits that all .....

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He drew our attention to para-4 of Board's circular No.27/110/96-TRU dt. 2.12.96 wherein the Board has clarified that all parts, components, accessories which are to used with capital goods of clauses (a) to (c) of Explanation (1) of Rule 57Q and classifiable under any chapter heading are eligible for availment of modvat credit. 4.2 Regarding Steel Structures, these items are fabricated from structural steel and are part of lime stone stacker and reclaimer which are used for supporting the b .....

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2004 (175) ELT 476 (Tri.-Chennai) 4) CCE Meerut II Vs Kesar Enterprises Ltd. 2005 (183) ELT 399 (Tri.-Delhi) 5) CCE Trichy Vs India Cements Ltd. 2012 (285) ELT 341 (Mad.) 6) ACC Ltd. Vs CCE Bhopal 2005 (192) ELT 345 (Tri.-Delhi) 7) Global Sugar Ltd. Vs CCE Kanpur 2000 (119) ELT 611 (Tri.) 8) India Cements Ltd. Vs CCE Hyderabad 2005 (180) ELT 247 (Tri.-Bang.) 9) Texmaco Ltd. Vs CCE Hyderabad 2000 (122) ELT 222 (Tri.) 10) Kalyani Steels Ltd. Vs CCE Pune 1998 (99) ELT 620 (Tri.) 5. Ld. A.R reiterat .....

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, appellants are not eligible for modvat credit. He relied Tribunal's Larger Bench in the case of Vandana Global Ltd. Vs CCE Raipur - 2010 (253) ELT 440 (Tri.-LB). He also relied Tribunal's decision in CCE Noida Vs D.S.M. Ltd. - 2003 (162) ELT 987 (Tri.-Del.). 7. We have carefully considered the submissions of both sides and examined the records. The period of dispute relates to April and May 1997 the modvat credit was denied under erstwhile Rule 57Q of CER. Out of 7 items, the major amo .....

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e case of Vikram Cement Vs CCE Indore (supra). The relevant paragraphs 4 & 5 of the Supreme Court order is reproduced as under :- "4. In so far as the Modvat/Cenvat credit on inputs (explosives, lubricating oils etc.) is concerned, the matter is squarely covered by the decision of this Court in the case of Vikram Cement v. CCE reported in 2006 (194) E.L.T. 3. Therefore, the appeals where credit on inputs is concerned, are allowed. 5.As regards the Modvat/Cenvat credit on capital goods, .....

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respective original authorities for decision only on the above issue. The ratio of the above apex court decision is squarely applicable to this case. The only condition that appellant should own the captive mines and not for other mines. We find that both the mines and factory are located within the same premises as per the plan layout including mining area and Central Excise registration was obtained as a single registration. Therefore, it is established that mines are captive mines forming int .....

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& 5 the Emitting Electrodes are made up of steel and are used in Electrostatic Precipitator Classifier in Pollution Control Equipment; Classifier Housing is a stationery part and is located at top of the vertical mill which are used coal mill, cement mill and raw mill. Similarly steel casings are outer covers of equipment like bag filters, Bucket Elevators. There is no dispute that these are parts of capital goods. On perusal of Board's circular No.27/110-96-TRU dt.2.12.96 it is categori .....

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