2007 (11) TMI 177

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.... The short question arising for consideration in this appeal is whether capital goods credit is admissible to the appellants in respect of certain items claimed to be eligible capital goods, under Rule 57Q of the erstwhile Central Excise Rules, 1944. The lower appellate authority denied this benefit to the party in respect of the following six items (1) Surface Miner [SH 8430.00 of the CET....

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...., it is submitted that these were used in a captive mine in connection with mining of limestone required for the manufacture of cement (final product). It is submitted that credit on these items is admissible to the appellants as held by the Apex Court in Vikram Cements v. CCE, Indore - 2006 (197) E.L.T. 145 (S.C.), wherein it was held that MODVAT credit on capital goods used in captive mine was a....

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....hat these items, which are found to have been used as accessories to main machinery falling under. Heading 84.30, are also eligible for capital goods credit as they were used in connection with the manufacture of cement. 2. We have heard ld. SDR also, who reiterates the findings of the Commissioner (Appeals). 3. After considering the submissions, we find that, in order to allow capital goods....

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....ar as spare parts for road milling machine are concerned, however, the position is different inasmuch as the eligibility of these items for capital goods credit has to be examined with reference to Rule 57Q as further amended by Notification No. 14/96-C.E. (N.T.), dated 23-7-96. We find that, under the provision so amended, goods falling under Heading 84.31 were not eligible for capital goods cred....