TaxTMI 
TaxTMI 
2012 (11) TMI 961
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.... inputs in terms of Rule 57A of the Central Excise Rules, 1944 is admissible on the following items: 1. Explosives 2. Grinding Media. 3. Cylpebs 4. Refractories (fire bricks) 5. Steel Castings 6. Ball Bearings 7. Electrodes 8. Refractory Cement 9. Rubber and articles of rubber" 2. The facts, in nutshell, are that the respondent-Company i.e. Century Cement, Raipur is engaged in manufacture of cement. The respondent claimed Modvat credit of duty paid on a number of inputs. The applicant-Department denied the credit on the ground that the items were of the nature of machines/machinery which do not fall within the definition of inputs. An appeal was preferred by the respondent-Co....
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....alls) and Cylpebs are "capital goods". (c) Refractories (Fire Bricks) and Refractory Cement: Refractories (fire bricks) are used as lining in the kiln. These Refractories (fire bricks) are fixed together and laid in the kiln with the help of Refractory Cement. Kiln is a capital goods which falls in the category of machines, machinery, plant which are excluded from the ambit of the definition of "inputs" as provided under Rule 57-A of the Central Excise Rules. The Kiln is not complete until and unless it is lined with Refractory Bricks with the help of Refractory Cement to act as an insulation to preserve the head within the Kiln and also to protect the shell of the Kiln. Refractories after specified intervals require replacement and the Ki....
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.... manufacture of either "clinker" or "cement" and, therefore, they are not considered as "inputs" in relation to manufacture of "clinker" or "cement". (g) Rubber and articles of Rubber: Rubber and articles of rubber are nothing "conveyor belt" made of rubber and classified under chapter Heading No. 4010.90 of Central Excise Tariff. The conveyor belts are used for carrying load from one place to another and is a component/accessory of material handling system. Thus, these conveyor belt are not used in the manufacture of final products, but are used in relation to material handling purpose. 4. Explanation to Rule 57-A of the Central Excise Rules, 1944, provides that inputs means which are manufactured or used within the factor....
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.... referred the provisions of Rule 57-J, the opening portion of which makes it clear that the said Rule will be applicable notwithstanding anything contained in the other rules. According to Rule 57-J, when the Central Government by notification specified the inputs used in the manufacture of intermediate products received by the manufacturer for use in or in relation to the manufacture of final product, then all such products or on which duty has been paid credit will be allowed.. Explosives would fall under column (2) being a tariff item in Chapter 36; the intermediate product, namely, limestone would fall under column (3) being covered by Chapter 25; and the final product, namely, cement would also fall under Chapter 25 and would fall und....
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....awahar Mills Ltd. & Others2, the Supreme Court held as under: "4. The aforesaid definition of "capital goods" is very wide. Capital goods can be machines, machinery, plant, equipment, apparatus, tools or appliances. Any of these goods if used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final product would be "capital goods", and, therefore, qualify for availing MODVAT credit. Per clause (b), the components, spare parts and accessories of the goods mentioned in clause (a) used for the purposes enumerated therein would also be "capital goods" and qualify for MODVAT credit entitlement. Clause (c) makes moulds and dies, generating sets and weighbridges used in factory of th....