M/S Northern Coal Fields Limited vs. Commissioner Commercial Tax
Held
The Court held that dumpers used exclusively within factory premises for mining operations, even if having large loading capacity, are plant and machinery and not motor vehicles excluded from input tax credit. The Tribunal's reliance on general motor vehicle definitions was deemed incorrect.
Facts
The assessee sought input tax credit on lubricants used in dumpers (HEMMs) for lifting and moving coal within mine premises. The Tribunal denied this credit, classifying the dumpers as capital goods not eligible for credit under specific VAT Act provisions.
Key Issues
Whether input tax credit on lubricants for HEMMs used exclusively in mining premises is admissible. Whether HEMMs are capital goods or excluded motor vehicles under the UP VAT Act.
Sections Cited
Section 2(f), Section 13(1)(a), Section 2(f)(B), Section 2(f)(iv), Rule 21(o), Rule 21(s), Section 2(28)
AI-generated summary — verify with the full judgment below
Court No. - 38 Case :- SALES/TRADE TAX REVISION No. - 31 of 2016 Revisionist :- M/S Northern Coal Fields Limited Opposite Party :- Commissioner Commercial Tax Counsel for Revisionist :- Krishna Agarawal 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 20.11.2015 in Second Appeal No. 5 of 2015 for A.Y. 2007-08 (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 Tons and more,
The judgment continues below.
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