MANIKGARH CEMENT LTD. Vs. CCE

JUDGEMENT

(1.) Heard both sides.

(2.) The issue involved in all the three appeals, being the same, the three appeals are decided through a common order.

(3.) The appellants are using explosives in their mines for blasting out limestones deposits. Limestone mines are not a part of the factory. This fact is not disputed. The credit of duty paid on 'explosives' has been claimed on the ground that use of explosives for extracting limestone which in turn, is used in the cement factory for manufacture of cement, is covered under Modvat credit rules. It is pleaded that the term "Input" has been defined to be goods which are used "IN of IN RELATION" to the manufacture of the final product. The explosives have been used in the process of extraction of limestone and the latter is used in the cement factory factory for manufacture of cement. Therefore, though the initial use of explosives is not in the factory premises, the intermediate product obtained through the use of explosives i.e. limestone is utilised in the cement factory. Therefore, it is pleaded that the use of explosive in the 'Mine' outside the factory does not render the inputs ineligible to Modvat credit.