2004 (1) TMI 625 - AT - Central Excise

Summary

Issues: Denial of Modvat credit on excavator used for mining activities due to non-compliance with Rule 57Q.

Analysis:
The appellant was denied the benefit of Modvat credit on an excavator used for mining activities because it was not used within the factory premises as required under Rule 57Q. The appellant argued that its mining activities were contiguous to the factory precincts, justifying the entitlement to Modvat credit for the excavator used in the mines.

The learned DR referenced previous Tribunal decisions to support the denial of Modvat credit to the appellant. The decisions in Madras Cements Ltd. v. CCE and South Eastern Coalfield Ltd. v. CCE, Raipur, affirmed by the Supreme Court, were cited as precedents. Additionally, the DR highlighted the decision in South Eastern Coalfields Ltd. v. CCE, Guntur, which emphasized that a mine subject to the Mines Act, 1952, cannot be considered part of the factory under the Factories Act.

The Tribunal found merit in the Revenue's contention, rejecting the appellant's claim that the mine should be treated as part of the factory for Modvat credit purposes. Based on this conclusion, the appeal was dismissed, upholding the denial of Modvat credit on the excavator used in the mining activities.