M/S Northern Coal Fields Limited vs. Commissioner Commercial Tax Lko.
Held
The Court held that the dumpers, used exclusively within factory premises for mining operations, qualified as capital goods. Consequently, the input tax credit on lubricants consumed by these dumpers was admissible.
Facts
The assessee, Northern Coal Fields Limited, filed a revision challenging the denial of input tax credit on lubricants used in heavy earth-moving machinery (dumpers). The machinery was used for lifting and moving coal within the mine premises.
Key Issues
The primary issues were whether dumpers used exclusively in mine premises constituted capital goods and if input tax credit on lubricants used in them was permissible under the UP VAT Act.
Sections Cited
Section 2(f), Section 13(1)(a), Rule 21(o), Rule 21(s)
AI-generated summary — verify with the full judgment below
Court No. - 38 Case :- SALES/TRADE TAX REVISION No. - 432 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. 152 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
The judgment continues below.
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