- (1.) The short question involved in this appeal is whetherthe duty paid on spares of ropeway used for the purpose of transporting the crushed limestone from the mines located 4.2 kms. away to the factory, is entitled to Modvat credit.
(2.) The Customs, Excise and Gold (Control) appellate Tribunal, New Delhi (for short 'cegat') by its impugned order of 25th march, 2003 disallowed the Modvat credit on the ground that the ropeway transports raw material from the mines to the factory premises and is not a material handling equipment within the factory premises. It is not disputed before us that the crushed limestone is brought from the mines to the factory premises where it is deposited utilising the ropeway as a means of transportation.
(3.) An identical issue came up for consideration before the CEGAT, in J. K. Udaipur udyog Ltd. v. CCE, Jaipur-ll. In that case the tribunal held, following the principles laid down in the case of CCE, chennai v. Pepsico India Holdings Ltd. , that the assessee was entitled to the Modvat credit. The commissioner of Central Excise came up in appeal before this Court in civil appeal no. 1129/2003 impugning the aforesaid decision of the CEGAT. However, by order dated July 10, 2003 the appeal was dismissed in view of the fact that the learned attorney general appearing for the Commissioner of Central Excise stated that he did not wish to press the appeal in view of the letter of the department dated 5th June, 2003. The aforesaid letter reads as follows : "Please refer to your office letter, dated 2nd may 03 on the above cited subject In this connection it is to inform you that case of cce, Chennai v. M/s. Pepsico Indie Holdings Ltd. [2001 (42) RLT 800], Final order No. 1581/2000 dated 27.10. 2000 in appeal no. El 2603/1998/mas has been accepted as reported by Chief Commissioner central Excise Chennai vide his letter C. No. IV/16/16/ 2003-CZO dated 3-6-03. "in these circumstances, this Court dismissed the appeal. Learned counsel appearing on behalf of the appellant submitted before us that there are several decisions of the tribunal which have followed the principles laid down in j. K. Udaipur Udyog Ltd. and Pepsico india Holdings Ltd. (supra) and the law is now well settled.;