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of <h1>Modvat credit allowed for essential plant items; denial upheld for Steel Wires. Appeal partially successful.</h1> <h3>Madras Cements Ltd. Versus Commissioner of Central Excise, Trichirapalli</h3> Madras Cements Ltd. Versus Commissioner of Central Excise, Trichirapalli - TMI Issues: Denial of modvat credit on various items under erstwhile Rule 57Q of Central Excise Rules.Analysis:1. The appellant filed an appeal against the Order-in-Appeal passed by the Commissioner of Central Excise (Appeals), Chennai, denying modvat credit under Rule 57Q.2. The Commissioner (Appeals) disallowed credit on dumpers and loaders, stating they are not part of the factory premises and not classified as capital goods under Rule 57Q. The appellant argued citing the Supreme Court's decision in Vikram Cement Vs CCE Indore, which clarified that all goods used in captive mines are eligible for modvat credit. Alternatively, the appellant claimed credit under Rule 57B for items like Emitting Electrodes, Steel Casing, and Classifier Housing, emphasizing their use in plant machinery.3. The appellant also defended the eligibility of Steel Structures and Steel Wires for modvat credit, citing their integral role in plant operations and relevant case laws supporting their claim.4. The Assistant Commissioner reiterated the adjudication order's findings and opposed the appellant's claims on certain items based on previous tribunal decisions.5. Upon careful consideration, the Tribunal analyzed the disputed items, emphasizing the Supreme Court's ruling on captive mines' eligibility for modvat credit. The Tribunal found dumpers and loaders used in captive mines qualified for credit. Additionally, it upheld the eligibility of Emitting Electrodes, Steel Casing, Classifier Housing, and Steel Structures for modvat credit based on their integral role in plant machinery.6. However, the Tribunal concurred with the previous decision disallowing modvat credit on Steel Wires, citing a previous final order on the same issue.7. Consequently, the Tribunal allowed modvat credit on most items except Steel Wires, partially allowing the appeal with consequential relief.This detailed analysis of the judgment provides a comprehensive overview of the issues involved and the Tribunal's decision on each aspect of the denial of modvat credit under Rule 57Q of the Central Excise Rules.
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