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M/s. Ultra Tech Cement Limited Versus Commissioner of Central Excise, Raipur

2015 (11) TMI 670 - CESTAT MUMBAI

Denial of MODVAT Credit - Capital goods used in the captive mines and outside the factory - Held that:- As regard capital goods used in the mines as per the submission of the appellant and ground plan submitted by them it is clear that it is captive mines which is used exclusively for the appellant factory. Hon’ble Supreme Case in the case of Vikram Cement (2006 (2) TMI 1 - Supreme court) held that capital goods used in the captive mines, Cenvat Credit is admissible. Following the ratio of the A .....

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aid judgment, I allow the Cenvat Credit to the appellant in respect of tyre protection chain.

Once the material is used in the immovable goods, as held by the Larger Bench in the case of Vandana Global(2010 (4) TMI 133 - CESTAT, NEW DELHI (LB)) the material used in the manufacture of such immovable goods shall not be eligible for Cenvat Credit. In the judgment of Rajasthan Spinning & Weaving Mills Ltd(2010 (7) TMI 12 - SUPREME COURT OF INDIA) of the Hon ble Apex Court and other judgme .....

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APPEAL NO. E/2240/05 - Dated:- 11-5-2015 - Mr. Ramesh Nair, Member (Judicial) For the Petitioner : Shri. Rajesh Oswal, Advocate and Akrit Jain, Consultant For the Respondent : Shri. V.K. Shastri, Asstt. Commissioner(A.R.) ORDER Per : Ramesh Nair This appeal is directed against Order-in- Original No. Commissioner/RPR/08 to 25/2005 dtd. 31/3/2005 passed by the Commissioner of Central Excise & Customs, Raipur wherein following order was passed: (i) Modvat Credit amounting to ₹ 1,19,180/- .....

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redit on various capital goods and material used in manufacture of capital goods in their factory. By the impugned order, the Cenvat Credit was disallowed on the following items: Sr. No. Item in dispute Amount of Credit (in Rs.) 1. Capital goods used in the captive mines 19,74,075 2. Diesel Locomotive 6,23,275 3. Tyre Protection Chain 1,09,968 4. CTD Bars, Angles, Channels, etc. 3,24,220/- Aggrieved by the said order inasmuch as credit of ₹ 30,31,538/- disallowed on the above items the app .....

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t Vs. CCE [2006(197) ELT 145(SC)]. (ii) Madras Cements Ltd. Vs. CCE [2010-TIOL-59-SC-CX] (b) As regard credit on Diesel Locomotive, he submits that Diesel Locomotive was used for movement of the material from one part of the plant to another therefore it is used in relation to the manufacturing final product. In support, for admissibility of Cenvat Credit on Diesel Locomotive, he placed reliance on following case laws: (i) Aditya Cement Vs. UOI [2008(221)ELT362(Raj.)] (ii) CCE, C & ST Vs. Bh .....

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ld be allowed on the Diesel Locomotive also. (c) As regard claim of Cenvat Credit on Tyre Protection Chain. The said item is used to protect tyre of the wheel loader used in cleaner handling for wear and tear. He submits that on the very same item, this Tribunal has allowed the Cenvat Credit in the case of Commissioner of C. Ex. Chandigarh Vs. A.C.C. Ltd. [2000(119) ELT 82(Tribuanl)] which was upheld by the Honble High Court of Himachal Pradesh as reported in [2008(230) ELT 44 (H.P.)]. (d) Rega .....

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Vs. Rajasthan Spinning & Weaving Mills Ltd. [2010(255) ELT 481 (SC). (ii) Bannari Amman Sugar Ltd. Vs. CCE [2010 (250) ELT 326(Kar.)] (iii) Commissioner Of Central Excise, Nagpur Vs M/S Lloyds Metals & Engg Ltd [2014-TIOL-1517-CESTAT-MUM] He submits that in view of above judgments which deals with identical goods, on all the four items Cenvat credit is admissible. 3. On the other hand, Shri. V.K. Shastri, Ld. Asstt. Commissioner(A.R.) reiterates the findings of the impugned order. He sub .....

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53) ELT 440(Tri- LB)] (ii) J.K. Cement Works Ltd. Vs. CCE, Jaipur[2004(178) ELT. 388(Tri-Del)] He submits that in view of the above judgments the appellant is not entitled for the Cenvat Credit for goods in question. 4. I have carefully considered the submissions made by both sides and perused record. 5. (a) I find that as regard capital goods used in the mines as per the submission of the appellant and ground plan submitted by them it is clear that it is captive mines which is used exclusively .....

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Court in the case of M/s Jayaswal Neco Ltd(supra) allowed credit on the following findings. 18. We find from the order of the Commissioner that in spite of taking note of the aforesaid use of the railway tracks and accepting the same as correct, the Commissioner denied the relief to the appellant on an extraneous ground, i.e., railway tracks were used for other purposes as well, namely, apart from conveying hot metal and hot pigs, it was used for carrying raw materials and finished goods as well .....

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o misreading of the process. Such an error has occurred because the Commissioner did not keep in mind the principle of law laid down by this Court in M/s. J. K. Cotton Spinning & Weaving Mills Co. Ltd.'s case, highlighted above. 19. When we read the order of the CEGAT, we find that CEGAT has not even adverted to and examined the issue from the aforesaid angle, which was the only method for arriving at a finding as to whether the railway tracks installed within the plant would come within .....

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ly incorrect and perverse but legally unsustainable as well. 20. Resultantly, we set aside the order of the Commissioner as well as of CEGAT insofar as it pertains to item "railway track material used for handling raw materials, process goods" and hold that the appellant has rightfully claimed for MODVAT credit in respect of this item which credit is wrongly reversed by the authorities below. To that extent, order of the Commissioner as well CEGAT is set aside and the present appeal is .....

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