2003 (9) TMI 271

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....nd Shri B.L. Narasimhan, learned Advocate for the respondents. M/s. Vikram Super Cement manufacture cement and have availed the Modvat credit of the duty paid on various capital goods which were used by them in their mines, situated about 4 to 5 kms. away from their factory. The learned DR submitted that it has been held by the Supreme Court in the case of Jaypee Rewa Cement v. C.C.E., M.P., 2001 (133) E.L.T. 3 (S.C.) that the capital goods are required to be used in the factory for the purpose of availing Modvat credit; that the Larger Bench of the Appellate Tribunal in the case of Madras Cements Ltd. v. C.C.E., Hyderabad, 2003 (158) E.L.T. 293 (Tri. - LB) = 2003 (56) RLT 978 (CEGAT - LB) has held, following the judgment in Jaypee Rewa Cem....

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....imestone is granted by the State Government only when the applicant undertakes to establish a cement factory for utilising the limestone in the manufacture of cement; that thus the allotment of land for mining and establishment of a cement factory are parts of an integrated scheme of the industrial policy of the Government; that, thus, the mere physical separation of the mines from the factory area would not break the nexus between the mines and factory. He also contended that dumpers are used for carrying limestone to crusher and as such is eligible capital goods and the Commissioner (Appeals) has allowed the Modvat credit, relying upon the decision in Malabar Cement Ltd. v. C.C.E., Cochin, 2002 (149) E.L.T. 751 (T) = 2002 (48) RLT 828. ....