JUDGMENT
S.S. Kang, Member (J)
1. Appellants are engaged in the manufacture of cement. Appellants availed benefit of modvat credit in respect of capital goods which are used in the mines. The benefit was denied to the appellants on the ground that the capital goods are used outside the factory. When the matter came before two Members Bench, the following point of law is referred to the Larger Bench:
“Whether in the facts and circumstances the capital goods which are used outside the factory are eligible capital goods to avail modvat credit in terms of Rule 57Q of the Central Excise Rules or not.”
2. Heard both sides.
3. At the out-set, learned SDR appearing on behalf of the Revenue brought to our notice that Larger Bench of the Tribunal in the case of Vikas Industrial Gas v. Commissioner of Central Excise, Allahabad, 2000 (70) ECC 256 (LB) : 2000 (118) ELT 257 and Hon’ble Supreme Court in the case of Jaypee Rewa Cement v. CCE, M.P., 2001 (77) ECC 457 (SC) : 2002 (133) ELT 3 held that the capital goods which are used outside the factory are not entitled for the benefit of modvat credit under Rule 57Q of the Central Excise Rules.
4. The learned counsel appearing on behalf of the appellants submitted that the Hon’ble Supreme Court in the case of Jaypee Rewa Cement, relied upon by the Revenue, while interpreting Rule 57A of the Central Excise Rules, held that explosives which are used in the mines are entitled for the benefit of modval credit as inputs vide Rule 57A of Central Excise Rules. The Hon’ble Supreme Court has no occasion to consider the provisions of Rule 57Q of the Central Excise Rule which are relevant for availing the benefit of the modvat credit in respect of the capital goods.
5. We find that Larger Bench of the Tribunal in the case of Vikas Industrial Gas; relied upon by the Revenue, is specifically on the issue which is under consideration in the present cases. The Tribunal held that pump used for delivering water from the reservoirs through pipeline to factory located a K.M. away from the factory, s not entitled to the benefit of modvat credit since in no way it can be treated in the factory premises. In the case of M/s. J.K. Udaipur Udyog Ltd., the benefit of modvat credit on capital goods used in the mining area was denied by the Tribunal after relying upon the decision of the Larger Bench in the case of Vikas Industrial Gas v. CCE, Allahabad (supra). M/s. J.K. Udaipur Udyog Ltd. filed appeal before the Hon’ble Supreme Court and the Hon’ble Supreme Court disposed of the appeal alongwith the various other appeals in the case of Jaypee Rewa Cement v. CCE, M.P., 2001 (77) ECC 457 (SC) : 2001 (133) ELT 3. The Hon’ble Supreme Court dismissed the appeal filed by M/s. J.K. Udaipur Udyog Ltd. In para 22 of the judgment, Hon’ble Supreme Court held as under:
“We have gone through the decision of the Tribunal. In view of the provisions of Rule 57Q, the appellant is not entitled to any relief, The appeal is dismissed.”
6. In view of the above decision of the Hon’ble Supreme Court which is directly on the issue before us, the reference is answered in favour of the Revenue.
7. As no other issue is involved in these appeals, therefore, in view of the above discussions, we find no merit in the appeals. The appeals are dismissed.