9911796707
TMI Blog2003 (9) TMI 271X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the issue involved is whether the Modvat credit of the duty paid on capital goods used in mines away from the factory is available to M/s. Vikram Super Cement, under erstwhile Rule 57Q of the Central Excise Rules, 1944. 2. We heard Shri Virag Gupta, learned DR for Revenue, and Shri B.L. Narasimhan, learned Advocate for the respondents. M/s. Vikram Super Cement manufacture cement and have avai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he respondents, as capital goods have not been used in their factory. 3. Shri B.L. Narasimhan, learned Advocate, submitted that the capital goods, involved in these appeals, are parts of Limestone Crusher, Dumpers and Conveyor Belts; that the conveyor belts are used exclusively in plant only; that show cause notice has wrongly been issued to them on the presumption that conveyor belts are used i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd as such is an extension of the factory area; that mine is not located at 4-5 kms. from the factory; that the lease of mining limestone is granted by the State Government only when the applicant undertakes to establish a cement factory for utilising the limestone in the manufacture of cement; that thus the allotment of land for mining and establishment of a cement factory are parts of an integra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry. The Larger Bench has followed the judgment of the Supreme Court in Jaypee Rewa Cement case wherein the Hon'ble Supreme Court held as under : "....In view of the provisions of Rule 57Q, the appellant is not entitled to any relief. The appeal is dismissed." The Larger Bench observed that "in the case of M/s. J.K. Udaipur Udyog Ltd., the benefit of Modvat credit on capital goods, used in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue has not rebutted their contention that the same is used exclusively in plant only. We, therefore, reject the appeal of the Revenue with regard to conveyor belt. We do not find any substance in respondents' plea about dumper being used to transport crushed limestone from mining area and it is not used in their factory. Thus, the respondents are not eligible to avail Modvat credit of dut ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
