Customs, Excise and Gold Tribunal - Delhi
M/S. Maihar Cement vs Cce Raipur on 1 May, 2001
ORDER
P.S. Bajaj
1. This order will dispose of appeals Nos.E/103 to 1110/2000-NB and E/2191-2194/2000-NB preferred by the appellants M/s.Maihar Cement Ltd. against the impugned orders of the Commissioner disallowing the modvat credit on the inputs in question which had been detailed in the show cause notices and also individually dealt with in the impugned orders itself.
2. The controversy in all these appeals centres round the question as to whether the disputed inputs are eligible for modvat credit or not. The appellants were engaged in the manufacture of the Portland cement and cement clinker. The plea taken up by them is that all the items in dispute were being used by them in or in relation to the manufacture of cement and clinkers and as such fall within the ambit of 'inputs'. The appellants have also filed affidavits during the pendency of these appeals wherein they have sworn that the inputs like oxygen, DA gas and welding electrodes were being used by them in or in relation to the running of the cement plant. The learned counsel in support of his contention that the disputed items satisfied the definition of inputs, has referred in Larger Bench decision of the Tribunal in Chemo Pulp Tissues & Ors. Vs. CCE Meerut & Ors. 2000(38) RLT 988(LB).
3. On the other hand, the learned SDR has only reiterated the correctness of the impugned orders of the Commissioner and argued that the disputed items had been rightly held to be not inputs eligible for the modvat credit.
4. We have heard both the sides and gone through the record.
5. It has been fairly conceded by both the sides that it is a question of fact as to whether the items as detailed in the impugned order itself and also in the show cause notices, can be said to be inputs being used by the appellants in or in relation to the running of the cement plant or not. The appellants had also filed additional affidavit before the Tribunal and copy of the same was supplied to the Revenue for getting comments of the adjudicating authority, but so far no comments had been received. Being a question of fact which can be only answered keeping in view the manufacturing activities of the appellants, both the sides agree that the matter be sent back to the adjudicating authority for fresh decision in the light of the material on record and the law propounded by the Tribunal and the Supreme Court in various cases regarding the inputs. Therefore, the impugned orders in all the appeals are set aside and the matters are sent back to the adjudicating authority for fresh decision after affording reasonable opportunity of hearing to both the sides. The appellants will be also at liberty to produce any fresh material if they wished, to substantiate their claim. All the appeals accordingly stand allowed by way of remand.
Dictated and pronounced in the open Court.