M/S Northern Coal Fields Limited vs. Commissioner Commercial Tax Lko.
Held
The Court held that dumpers used exclusively within factory premises for mining operations are plant and machinery and qualify as capital goods. The exclusionary clauses of the UP VAT Act were not applicable in this specific context.
Facts
The assessee sought input tax credit on lubricants used in heavy earth-moving machinery (dumpers) for lifting and moving coal within mine premises. The Tribunal denied this credit, classifying the dumpers as capital goods not eligible for credit under the UP VAT Act.
Key Issues
Whether lubricants used in dumpers, classified as capital goods and used exclusively in mine premises, are eligible for input tax credit under the UP VAT Act and its rules.
Sections Cited
Section 2(f), Section 13(1)(a), Section 2(f)(B), Section 2(f)(iv), Rule 21(0), Rule 21(s), Section 2(28)
AI-generated summary — verify with the full judgment below
Court No. - 38 Case :- SALES/TRADE TAX REVISION No. - 430 of 2015 Revisionist :- M/S Northern Coal Fields Limited Opposite Party :- Commissioner Commercial Tax Lko. Counsel for Revisionist :- Amit Goel,Krishna Agrawal Counsel for Opposite Party :- C.S.C. Hon'ble Saumitra Dayal Singh,J.
Heard Shri Rakesh Ranjan Agarwal, Senior Advocate, assisted by Shri Krishna Agarwal and Shri Amit Goyal, learned counsel for the assessee and Shri A.C. Tripathi, learned Standing Counsel.
Present revision has been filed by the assessee against the order of the Commercial Tax Tribunal, Varanasi, dated 9.7.2015 in Second Appeal No. 153 of 2014 for A.Y. 2009-10 (U.P.).
Present revision has been pressed on the following question of law: "(1) Whether the Tribunal was justified in denying input tax credit on lubricants consumed in dumpers ie Heavy Earth Moving Machineries (HEMM's) being capital goods as per Section 2(f) (vii) read with Section 13(1)(a) of UP. VAT Act and used in lifting and moving of raw coal blocks within the factory premises mines area from coalmine to Coal Handling Plant (CHP)? (2) Whether the dumpers ie Heavy Earth Moving Machineries (HEMM's) having loading capacity of 120
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