MADRAS CEMENTS LTD. Vs. CCE

JUDGEMENT

(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:

(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.