AMBUJA CEMENT RAJASTHAN LTD. AND Vs. CCE

JUDGEMENT

(1.) These appeals are against the orders passed by the Commissioner (Appeals) denying to the appellants Modvat credit on explosives used at off factory mines for producing limestone. The relevant periods, in respect of which the credits have been denied to the appellants are Sept. 2001 to Jan. 2002, April to Nov. 2000 and July to November 2001 respectively in Appeals No. 871, 896 and 2075.

(2.) Examined the records and heard both the sides. Arguing for the appellants in Appeal No. 896/2003, the learned Counsel submits that the issue involved in the case is squarely covered by the decision of this Bench in the cases of Commissioner v. J.K. Udaipur Udyog Ltd., 2002 (147) ELT 877 and Commr. v. Birla Corporation Ltd., 2002 (146) ELT 215, This submission is not contested. In the cited cases, one of the issues considered by this Bench was whether the explosives used by the respondents for mining limestone at sites outside their cement factory were eligible inputs for Modvat purpose. In each of the two cases, the relevant period was April to September 2000 i.e. prior to the date (1.7.2001) on which the Cenvat Credit Rules, 2001 came into force and it was held that the explosives used as above were eligible inputs for Modvat credit under Rule 57 -AA of the Central Excise Rules, 1944. In the instant Appeal No. E/896/2003 wherein the period of dispute is April to Nov. 2000, the issue stands squarely covered in favour of the appellants. Accordingly, the said appeal is allowed.

(3.) In each of the remaining two appeals, the period of dispute is from 1.7.2001 or from a subsequent date and the relevant Rule governing input duty credit is Rule 3 of the Cenvat Credit Rules, 2001. The ground on which the credits taken by the appellants in these appeals on explosives under the said Rule was disallowed by the lower appellate authority is that the said goods does not fit in the definition of "input" under Clause (f) of Rule 2 of the Cenvat Credit Rules, 2001. This definition reads as under: