2014 (12) TMI 407

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....esent appeal are that by the impugned order, the Commissioner (Appeals) has denied CENVAT credit on the tyres for dumpers used for transportation of lime stone from the mines to the factory of the appellant. The reason advanced in the impugned order for denial of credit is that the tyres falling under Chapter 4011.99, used in dumpers of Chapter 87, did not fall under the definition of Capital goods in terms of Rule 2(a) of the CENVAT Credit Rules, 2004. 3.  The learned Advocate appearing for the appellant submitted that components, spares and accessories of dumpers used to provide taxable services as specified in sub-clauses (B) and (C) of Rule 2(a) of the CENVAT Credit Rules will qualify for availment of credit in terms of sub-clau....

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....ally connected with the process of manufacture of the final product within the factory, and as such, the tyres fitted to the dumpers, in my view, will meet the criteria  of definition of  'input' for taking CENVAT credit. I also find that the Tribunal decision in the case of Hindustan Zinc Ltd. (Supra), relied on by the appellant is squarely applicable to the facts of the present case, wherein it has been held that CENVAT credit is available on tyres of LPDT used by the appellant in mines. The relevant paragraphs in the said decision are extracted herein below:-          13. The issue before me is whether tyres which are used as part of LDPT can be considered as inputs. Revenue ar....