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2015 (9) TMI 1211 - CESTAT CHENNAI

2015 (9) TMI 1211 - CESTAT CHENNAI - TMI - 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 an .....

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e for modvat credit. We find that in the case 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 attain .....

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r R. Periasami The appellant filed appeal against 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 Commis .....

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l. 3. Ld. Consultant appearing for the appellant 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 th .....

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rs and loaders are not considered as capital 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 .....

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l goods which are specified under Rule 5Q. 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 re .....

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ennai) 3) CCE Trichy Vs India Cements Ltd. 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 1 .....

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Rule 57E of CER. Regarding Steel structures, 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 Rul .....

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tled by the Hon'ble Supreme Court in the 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 .....

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vat Rules. The matters are remanded to the 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 establish .....

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ding 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 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 .....

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