Appeal allowed, case remanded for reconsideration in line with Vikram Cement judgment. Cenvat credit clarified for SBM installation. Stay extension application dismissed.

The Tribunal allowed the appeal by remanding the case to the adjudicating authority for reconsideration in line with the Vikram Cement judgment. The Supreme Court clarified that cenvat credit on capital goods used in Single Buoy Mooring (SBM) installation at sea would be available if mines are captively used as one integrated unit with the concerned unit. An application for extending the stay order was dismissed as infructuous, and the appellants were granted a proper opportunity of hearing.

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Issues:
Admissibility of cenvat credit on capital goods used in Single Buoy Mooring (SBM) installation at the anchorage in the sea.

Analysis:
The appellants, engaged in manufacturing excisable goods, sought cenvat credit on capital goods used in SBM installation. The Adjudicating authority denied the credit based on a previous Supreme Court decision. However, it was argued that this decision was overruled by a Larger Bench of the Supreme Court. The Tribunal noted that the Supreme Court, in the case of Vikram Cement vs. CCE, had held the earlier decision contrary and not good law. The Supreme Court further clarified that if mines are captively used as one integrated unit with the concerned unit, cenvat credit on capital goods would be available. Consequently, the matter was remanded to the adjudicating authority for fresh consideration in line with the Vikram Cement judgment. The appeal was allowed by way of remand, with the directive for proper opportunity of hearing. An application for extension of the stay order was dismissed as infructuous.

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