TaxTMI 
TaxTMI 
2003 (3) TMI 219
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....y from the factory; that the Commissioner under the impugned has disallowed the Modvat credit in respect of explosives under Rule 57A of the Central Excise Rules, 1944; that the explosives are used as an input for the excavation of lime stone; that the Supreme Court in the case of Jay Pee Rewa Cement v. CCE, 2001 (133) E.L.T. 3 (S.C.) has allowed the Modvat credit of the duty paid on explosives holding that "reading of Rule 57A clearly shows that the Notification is to specify the goods used in or in relation to the manufacture of the final product whether directly or indirectly and Rule 57A does not in any way specify that the inputs have to be utilized within the factory premises; that Explanation contained in Rule 57A also does not in an....
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....of mining, and continues with the crushing of limestone boulders into gittis in the Crusher Plant; that accordingly, they had shown the crusher plant as also the Ropeway used for conveying the crushed limestone in its ground plan, that had been approved from time to time. He relied upon the decision in the case of J.K. Udaipur Udyog Ltd. v. CCE, Jaipur, 2002 (147) E.L.T. 996 (T) = 2002 (105) ECR 374 (T) wherein the Tribunal has allowed the Modvat credit on the Ropeways holding that extension outside the factory is a part of Ropeway inside the factory, and therefore, it should be treated as capital goods. 3. In respect of disallowing Modvat credit on tyres used in dumpers, truck and material handling equipment, the learned Advocate submitte....
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.... during their use and there is no provision even in Rule 57S which requires that credit should be reversed if some parts develop defect during their use in the warranty period. He also mentioned that the Modvat credit has been denied to them as the same was taken on the basis of photocopy of invoices; that two invoices are now available and the credit in respect of the same may be allowed. Finally the learned Advocate mentioned that the Commissioner has mistakenly disallowed the credit of Rs. 20,728/- twice - once at Srl. No. 7 at page 19 and again at Srl. No. 48 at page 20 of the impugned order; that a similar mistake has been made in respect of Srl. No. 1 of the chart at page 19 of the order disallowing an amount of Rs. 81,681/- which has....
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.... as the Modvat credit of duty paid on explosives is concerned, the issue stands decided by the judgment of the Supreme Court in the case of Jaypee Rewa Cement v. CCE, M.P., 2001 (133) E.L.T. 3 (S.C.). Thus following the ratio of the said judgment of the Supreme Court we hold that Modvat credit of the duty paid on explosives is available to the appellants. It has been mentioned by the Revenue in the Cross objections that the Appellants' contention regarding credit disallowed twice was found on examination to be correct. Accordingly we hold that in respect of entries mentioned by the learned Advocate the credit is disallowable, if any, only once and not twice. As far as tyres and spares for dumpers are concerned the learned Advocate has submi....
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....the submissions of the learned SDR that Modvat credit cannot be allowed on the basis of such photocopies. The learned Advocate for the Appellants, however, has mentioned that they have now in their possession two original invoices. The Appellants may produce the original copies of duty paying documents before the Adjudicating Authority for consideration. The Commissioner has disallowed the credit on the spares for Ropeway as the Ropeway is used for bringing crushed lime stone from the mines. It is not the case of the Appellant that the Ropeway is used as material handling equipment within the factory premises for carrying the material from one place to another within the factory. Ropeway admittedly is used to bring the lime stone from the m....