Case Law Details
M/s Hindustan Zinc Limited Vs. CCE (CESTAT Delhi)
The appeal is filed against the order-in-appeal No. 09(AK)/CE/JPR/2017 dated 31.01.2017 passed by the Commissioner (Appeals) Central Excise, Jaipur. The period of dispute is March to September, 2012.
2. The appellant is engaged in manufacture of zinc & lead concentrates falling under Chapter 26 of the First Schedule to the Central Excise Tariff Act, 1985. Non-ferrous metal ores are mined and crushed in appellant’s captive mines, for manufacturing zinc / lead concentrates. The appellant uses mining machinery/ material handling equipment in relation to excavation and transportation of ores, located within the same captive mining area. For manufacture of their final products i.e. zinc and lead concentrates. To maintain continuity in its manufacturing operations, the appellant purchased tyres for use in the material handling equipments. The duty paid on tyres used in material handling equipment was availed as cenvat credit. The present dispute relates to availment of cenvat credit on tyres used in RBO (material handling equipment) for mining operations during the period in dispute.
3. The department was of the view that the tyres for material handling equipment falling under Central Excise Tariff 4011 99 00 are outside the ambit of the definition of capital goods under Rule 2(a) of the Cenvat Credit Rules. The lower authorities accordingly disallowed the cenvat credit amounting to Rs. 45,78,325/- along with order for payment of interest and penalties.
4. With the above background, we heard Sh. Hemant Bajaj, ld. Advocate for the appellant as well as Sh. M. R. Sharma, ld. AR for the Revenue.
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