Final Order No. 1450/2008-SM(BR)(PB), arising from Appeal No. E/610/2007-SM. Case: Hindustan Zinc Ltd. Vs Commissioner of Cus. & C. Ex., Jaipur. CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal)
| Case Number | Final Order No. 1450/2008-SM(BR)(PB), arising from Appeal No. E/610/2007-SM |
| Counsel | For Appellant: Shri B. Narasimhan with V.N. Shukla, Advocates, and For Respondent: Shri S. Gautam, Authorized Representative. |
| Judges | Ms. Jyoti Balasundaram, Vice-President |
| Issue | Cenvat Credit Rules, 2004 - Rule 2(a) |
| Citation | 2009 (235) ELT 289 (Tri - Del) |
| Judgement Date | November 06, 2008 |
| Court | CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal) |
Order:
(Principal Bench, New Delhi)
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I have heard both sides on the appeal against the order of the Commissioner (Appeals) disallowing the Cenvat credit on the following items:-
(i) HDPE Pipes
(ii) Ventral Diesel Hydro Loco
(iii) Battery Lead Acid
(iv) Ingot white metal.
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HDPE Pipes are used for inserting into holes made by drilling in the mines for holding explosive compounds to blast the rocks. Appellants had explained that HDPE pipes are used as the shell of the explosives for carrying out blasting in the mines. Prilled ammonium nitrate and diesel is filled in the pipes and then detonators are attached to the same. If the prilled ammonium nitrate and explosives are not filled in the pipes; same would get burnt up. By putting it in HDPE pipes, it is possible to ignite the prilled ammonium nitrate and diesel in a closed place which results in explosion of the rocks. In this view of the matter, I see force in the submission of the appellant that HDPE pipes are part of the explosives and since duty paid on explosives used in captive mines has already been decided by the Apex Court in the case of Vikram Cement v. CCE, Indore reported in 2006 (194) ELT 3 (SC), to be admissible credit of Rs. 5,280/- is admissible in respect of HDPE pipes.
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As regards Ventral Diesel Hydro Loco, it is submitted that this item is a rail locomotive falling under Chapter 8602 and used for hauling ore in the underground mine which heading is not covered under the definition of capital goods. Therefore, they are not eligible to Cenvat credit as capital goods and the alternative plea that they are held to be eligible to input credit also is not tenable, as there is no substantiation of this plea.
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Battery Lead Acid falling under Chapter 8708 is not covered under the definition of capital goods as contained under Rule 2 of the Cenvat Credit Rules, 2004. Therefore, I uphold the finding that no credit is admissible on...
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