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TMI Blog2025 (1) TMI 676X X X X Extracts X X X X X X X X Extracts X X X X ..... it Rules, 2004 to mean there is no dispute about the fact that earth moving equipments such as dumpers are being used by the respondent to provide output service. The dumpers even if classifiable under Chapter 87, can be considered within the definition of inputs, as per Rule 2(k) of the Cenvat Credit Rules, 2004. Exclusion clause of this definition applies to light diesel oil, high speed diesel oil, motor spirit and motor vehicles. It is observed that despite this definition, the dumpers and tippers are held to not to be considered as motor vehicle by Hon ble Apex Court in the case of Belani Ores Ltd. Etc. Vs. State of Orissa Etc. [ 1974 (9) TMI 115 - SUPREME COURT] wherein it has been observed ' The mere fact that there is no fence or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 019 vide which the entire demand proposed has been dropped. The facts in brief are as follows: 1.1 The respondent is engaged for rendering, Mining Services . Based upon an intelligence gathered by the officers of Anti-Evasion wing of Central Excise Commissionerate, Jaipur-II, following issues were raised: (i) The service recipient namely M/s. Rajasthan State Mines Minerals Ltd. (RSMML) had provided Diesel Explosive/blasting accessories free of cost on actual consumption basis but the value thereof was not included by the respondent. (ii) The availment of Cenvat credit as ISD on the basis of wrong documents was also objected. (iii) The availement of Cenvat credit on the dumpers and tippers used for transportation in the mine area as was rece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices. Capital goods do not get consumed in the course of manufacture of final products or provision of output services, rather the same are used over long period of time for the manufacture of final products or for provision of output services. 3.1 The entire cost of input is, therefore, included while determining the value of final product or for provision of output service as revenue expenditure. However, the cost of capital goods is not directly included in the value of final products or the value of output services. Rather a portion of the value of capital goods is depreciated every year for inclusion in the value of final products or the value of output services because of their long use spread over a period of time. Further, the inpu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5/2010-C.E.(N.T.) dated 22.06.2010 which had included equipments like dumpers and tippers etc. in the definition of capital goods. It is mentioned that prior this date the Cenvat credit should not be made available to the respondent on dumpers and tippers as capital goods. With these submissions, it is mentioned that the impugned order may be set aside vis- -vis dropping the demand with respect to the Cenvat credit availed by the respondent on dumpers and tippers. 4. While rebutting these submissions, learned counsel for the respondent has mentioned that the issue involved i.e. about the availment of Cenvat credit on dumpers and tippers used in the mining of mineral oil or gases while providing the said services is no more res integra as ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re is no dispute about the fact that earth moving equipments such as dumpers are being used by the respondent to provide output service. We are of the view that dumpers even if classifiable under Chapter 87, can be considered within the definition of inputs, as per Rule 2(k) of the Cenvat Credit Rules, 2004. The definition of inputs as applicable for service provider is given in Rule 2(k)(ii). As per Rule 2(k) of the Cenvat Credit Rules, 2004, input means- (i) (ii) All goods, except light diesel oil, high speed diesel oil, motor spirit, commonly known as petrol and motor vehicles, used for providing any output service; 5.1 Exclusion clause of this definition applies to light diesel oil, high speed diesel oil, motor spirit and motor vehicles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as amended the Cenvat Credit Rules to allow cenvat credit for dumpers / tippers registered in the name of service provider for providing taxable service for providing site formation etc. 5.3 This Tribunal even in subsequent case titled as M/s. R.K. Transport Company Vs. Commissioner of Central Excise and Customs, Raipur reported as 2020 (11) TMI 34 CESTAT NEW DELHI while considering as to whether the credit is admissible to tippers as inputs has held as follows: Whether credit is admissible 'tippers' as inputs under rule 2(k) of the Credit Rules? - HELD THAT:- In SOUMYA MINING LTD. VERSUS CCE, RAIPUR [2017 (6) TMI 1071 CESTAT NEW DELHI], the Tribunal held that even for the period prior to June, 2010 credit was admissible on 'tip ..... X X X X Extracts X X X X X X X X Extracts X X X X
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