9911796707
TMI Blog1999 (9) TMI 401X X X X Extracts X X X X X X X X Extracts X X X X ..... ng under Heading 8429.00 and dumpers falling under Heading 8704.00. Both these items were treated by the Commissioner (Appeals) as capital goods falling under Rule 57Q of the Central Excise Rules and allowed Modvat credit to the extent of Rs 20,21,050/-. The revenue is aggrieved of this order and in so far as these two items are concerned contend that the credit of duty paid on capital goods is permissible, subject to its use in their factory for the purpose of producing or processing of any goods for the manufacture of final goods. It is contended that the excavators and dumpers are not used within the precincts of the factory and which are used in the mines and the mines cannot be considered as a factory, in view of the specific definitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xplosives used for quarrying of limestone were entitled for the benefit of Modvat credit, on the basis of the ratio of the judgment rendered in the case of Indian Rayon & Industries Ltd. v. CCE as reported in 1995 (76) E.L.T. 558 and that of CCE v. New Vikram Cement's as reported in 1997 (95) E.L.T. 98. He points out that the Bench of Northern Regional Bench did not follow the ratio of the decision in the case of Madras Cements Ltd. rendered by the Southern Regional Bench. He points out to the judgment in the case of Shree Cement Ltd. v. CCE (Single Member of Northern Bench) as reported in 1999 (107) E.L.T. 223 (T), wherein also it has been held that below bar used in mines for crushing limestone is entitled for the benefit of credit. He po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able, as in those cases, the items were used within the precincts of the factory, while in the present case excavators and dumpers were used in the precincts of mines and mines are excluded from the definition of 'factory', as appearing under Section 2(e) of the Central Excise Act. We find that the Tribunal has already considered this issue in the case of Madras Cements Ltd. cited supra and the issue has been clearly gone into in detail and held that dumpers which are used within the precincts of mines cannot be considered as capital goods for the purpose of grant of Modvat credit. Therefore, the ratio of the Madras Cements Ltd. directly applies to the facts of the present case and applying the said ratio to the present case, the impugned o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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