2015 (9) TMI 1381 - AT - Central Excise

Tribunal Grants Credit on Kiln Equipment, High Court Reverses Decision

The India Cements Ltd. Versus Commissioner of Central Excise, Trichy

The India Cements Ltd. Versus Commissioner of Central Excise, Trichy - TMI Issues Involved:1. Denial of credit on parts of surface miners used in the mines2. Availment of credit on CCTV Cameras used in the Kiln3. Eligibility of 100% credit on goods cleared under project imports prior to 1.3.1997Analysis:Issue 1: Denial of credit on parts of surface miners used in the minesThe appeal was taken up for fresh hearing as per the High Court's order, which set aside the Tribunal's previous order for lacking detailed reasoning. The appellant argued that parts of surface miners used in the mines are eligible for credit based on previous judgments. The Tribunal examined the admissibility of credit on inputs used in the mines and confirmed the eligibility based on various precedents and the appellant's own case law. The High Court's decision in a related case supported the appellant's claim, allowing credit on parts of surface miners.Issue 2: Availment of credit on CCTV Cameras used in the KilnThe appellant contended that CCTV Cameras used inside the kiln for monitoring the manufacturing process are eligible for credit, citing relevant case laws. The Tribunal agreed with the appellant, stating that CCTVs are essential for monitoring the manufacturing activity and thus eligible for credit. Precedents and the specific use of CCTVs in the production process supported the Tribunal's decision to allow credit on CCTV Cameras.Issue 3: Eligibility of 100% credit on goods cleared under project imports prior to 1.3.1997Regarding the eligibility of 100% credit on goods cleared under project imports before 1.3.1997, the Tribunal analyzed the relevant dates of receipt of capital goods and the applicable rules. The Tribunal held that since the goods were received in the factory prior to the date when the 75% credit restriction came into effect, the appellant was entitled to 100% credit on the goods imported under project imports. The decision was supported by previous case law and the specific circumstances of the appellant's case.In conclusion, the Tribunal allowed credit on parts of surface miners, CCTV Cameras used in the Kiln, and granted 100% credit on goods imported under project imports before 1.3.1997, based on detailed analysis, precedents, and the specific facts of the case. The impugned order was set aside, and the appeal was allowed in favor of the appellant.