2015 (2) TMI 835

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....he facts and circumstances of the case, the Appellate Tribunal was justified in denying modvat credit on capital goods used in the captive mines? ii) Whether the impugned orders of the Hon'ble Tribunal can be sustained in the light of the decision of the Apex Court in Birla Corporation  Vs  Commissioner (2005 (186) ELT 266)? iii) Whether para 22 of Jaypee Rewa Cements  Vs  CCE, 2001 (133) ELT 3 (SC)) is applicable to the appellant's case? 2. The short facts of the case are that the appellant/assessee is engaged in the manufacture of cement falling under Chapter 25 of the Central Excise Tariff Act, 1985. The appellant/assessee availed Modvat credit on certain capital goods/inputs which were used in its captive ....

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....cify the goods used in or in relation to the manufacture of the final product whether directly or indirectly. In the present case, inputs which are used in relation to the manufacture even directly would be regarded as an input for the purpose of Rule 57A. Sub-rule (1) of Rule 57A does not, in any way, specify that the inputs have to be utilised within the factory premises. The explanation contained in Rule 57A is merely meant to enlarge the meaning of the word input and does not in any way restrict the use of the input within the factory premises nor does the said Rule 57A require the inputs to be brought into the factory premises at any point." 5. Learned counsel appearing for the appellant placed reliance upon two subsequent decisions o....

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....on is extracted hereunder :- "5. As regards the Modvat/Cenvat credit on capital goods, if the mines are captive mines so that they constitute one integrated unit together with the concerned cement factory, Modvat/Cenvat credit on capital goods will be available to the assessee. On the other hand, if the mines are not captive mines but they supply to various other cement companies of different assessees, Modvat/Cenvat credit on capital goods used in such mines will not be available to the concerned assessee under the appropriate Modvat/Cenvat Rules. The matters are remanded to the respective original authorities for decision only on the above issue." 8. The abovesaid view of the Supreme Court was reiterated in a subsequent decision in the ....