2001 (10) TMI 786

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Jaypee Rewa Cement v. CCE, M.P. reported in [2001 (133) E.L.T. 3 (S.C.) = 2001 (98) ECR 193 (S.C.)], the stay applications and appeals are taken up together for final disposal as per law. 2. E/710-712/2001/MAS The issue involved in all these 3 appeals is pertaining to grant of Modvat credit on the HDPE bags used for dispatch of reprocessed cement. E/713-715/2001 & E/719-720/2001/MAS These appeals pertain to non grant of Modvat credit on explosives and motors used in the mines for excavating lime stones which in turn is used as raw material in the manufacture of final product, Cement. E/716-718/2001/MAS These appeals pertain to non grant of Modvat credit on lubricating oils used in the excavating of lime stones in the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....duty as per Rule 96 ZV. The ld. Consultant also argued that they are also entitled for Modvat credit on conveyor belts which is both used in the cement factory and mines, since the lime stones is taken from the mines to the factory. There are other capital goods which are used in the mines and all these capital goods though used exclusively in the mines are also helping in or in relation to the manufacture of final product. Therefore, Modvat credit on such capital goods has also to be given on the same premise as the Hon'ble Apex Court has allowed them Modvat for expolsives used in the excavation of lime stones. The list of capital goods which are used exclusively in the mines is like AC Motors, cables, grinding wheels, machine parts, gear ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....uty. We therefore confirm the findings recorded by the ld. Commissioner (Appeals) in his order in appeal Nos. 14, 15, 16/2001 as a result, the Appeal Nos. E/710, 711, 712/2001 are dismissed. 6. As regards explosives used in the mines, the Hon'ble Apex Court judgment in the case of Jaypee Rewa Cement v. CCE, M.P. reported in 2001 (133) E.L.T. 3 (S.C.) has held that Modvat credit on explosives is permissible since they are inputs on which duty has been paid by the appellants, falling under Chapter heading 36 of the Central Excise Tariff Act which are used in the mines in order to excavate lime stones as they are used as raw material in the manufacture of final product, namely cement. The Hon'ble Apex Court has reversed the decision of....