MANGLAM CEMENT LTD. Vs. CCE

JUDGEMENT

(1.) THE issue involved in this Appeal filed by M/s. Manglam Cement Ltd. is whether CENVAT Credit of the duty paid on the inputs used outside the factory premises is available to them.

(2.) SHRI Pankaj Mullick, learned Chartered Accountant, submitted that the Appellants manufacture clinker and cement and avail CENVAT Credit in respect of duty paid on inputs; that the Revenue has disallowed the CENVAT Credit in respect of explosive used by them in their mines on the ground that these inputs were not used within the factory of production. The learned Advocate, further, submitted that the Supreme Court in the case of Jaypee Rewa Cement vs. Commissioner, 2002 -Taxindiaonline -97 -SC -CX, has held that explosives which are used outside the factory by cement manufactures for excavation of limestone are eligible for duty credit an inputs; that therefore, inputs used by them in their mines are eligible for CENVAT Credit; that the definition of inputs in Rule 2 (f) of CENVAT Credit rules, 2001 does not prevent the use of inputs outside the factory; that the expression "within the factory of production" occurring at the end of the said Rules does not relate to the inputs but relates to all the materials mentioned in the later portion of the definition of inputs such as lubricating oil, greased, coolants etc; that this view has been upheld by the Appellant Tribunal in the case of CCE, Jaipur, Vs. Birla Corporation Ltd. 2002 (146) ELT 215 (Tri) and CCE Jaipur Vs. J.K. Udaipur Udyog Ltd. 2002 (147) ELT 877.

(3.) COUNTERING the arguments Shri S.C. Pushkarna, learned Departmental Representative, submitted that the Supreme Court's decision in Jaypee Rewa Cement Case was delivered with reference to earlier Rule 57 A of the Central Excise Rules, 1944, wherein the Rule was silent about the use of inputs within the factory of production; that the present dispute relates to the period from July, 2001 to June, 2002 when CENVAT Credit Rules, 2001 were operational; that the definition of inputs contained in Rule 2(f) of the CENVAT Credit Rules reads as under :