2010 (7) TMI 179 - SCH - Central Excise

Cenvat Credit Capital Goods Mines if captive mines so as to constitute one integrated unit with concerned cement factory, Cenvat/Modvat credit available. Mines if not captive mines but supply to various other cement companies of different assessee and goods used in mines outside factory of assessee, credit not available under appropriate Rules. All matters remanded to original authorities to get clear finding of issue. Cenvat/Modvat- Input used in mines- explosives, lubricating oil, etc. used in mines. Issue squarely covered by Vikram Cement Vs. CCE 2006 TMI - 301 - Supreme court. Appeals of assessee concerning credit on inputs allowed.

Summary

The Supreme Court ruled on the eligibility of MODVAT/CENVAT credit on inputs and capital goods used in mines. Credit on inputs like explosives and lubricating oils is allowed based on a previous decision. For capital goods, credit is available if mines are captive to the cement factory, but not if they supply to other companies. Cases are remanded for further decision. No costs awarded.