M/S Northern Coal Fields Limited vs. Commissioner Commercial Lko.
Held
The Court held that the dumpers, used exclusively within the factory premises for mining operations, were not motor vehicles in the general sense and thus not excluded from input tax credit. The denial of credit was deemed unjustified.
Facts
The assessee sought input tax credit on lubricants consumed in heavy earth-moving machinery (dumpers) used 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 used in dumpers (HEMMs) is admissible when these are considered capital goods used exclusively within factory premises. Whether dumpers, not registered with RTO and used only in factory premises, fall under the exclusionary clause for motor vehicles.
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. - 170 of 2015 Revisionist :- M/S Northern Coal Fields Limited Opposite Party :- Commissioner Commercial 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 12.02.2015 in Second Appeal No. 112 of 2014 for A.Y. 2008-09 (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 T
The judgment continues below.
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