LAFARGE INDIA PVT. LTD. Vs. CCE

JUDGEMENT

(1.) THE appellant has challenged the order of the Commissioner (Appeals) made on 30.5.2005 setting -aside the order -in -original by which refund claim of Rs. 5,29,225/ - in respect of the modvat claim on explosives used in the mines of the appellant was sanctioned.

(2.) FROM the record it had appeared to the Revenue that credit of Rs. 5,29,225/ - was taken by the appellant on explosives used in their mines for the manufacture of cement and clinker during the period from 1.1.2001 to 30.6.2001. The Assistant Commissioner found that cenvat credit was admissible on explosives used in such mines in terms of Rule 2(f) of the Cenvat Credit Rules, 2001. The Appellate Commissioner, however, relying on the decision of the Supreme Court in the case of CCE v. J.K. Udaipur Udyog Ltd. , held that the refund was erroneously allowed by the Assistant Commissioner, and allowed the appeal of the Revenue.

(3.) THERE is no dispute over the fact that the explosives were used in the captive mines of the appellant firm for manufacture of cement and clinker. An identical issue was considered by the Hon'ble Apex Court in the case of Jaypee Rewa Cement v. CCE and also in the case of Vikram Cement v. CCE , by a Larger Bench of the Supreme Court which approved the ratio of the decision in the case of Jaypee Rewa Cement, and it was held that the explosives used as inputs in quarrying limestone used in the manufacture of cement were eligible for modvat credit/cenvat credit [(see paragraphs 11 and 25 of the decision of Supreme Court in the case of Vikram Cement (supra); and paragraph 13 of the decision in the case of Jaypee Rewa Cement (supra)].