COMMISSIONER OF CENTRAL EXCISE Vs. NEW VIKRAM CEMENTS

JUDGEMENT

(1.) THE assessee, M/s. New Vikram Cements, is engaged in manufacturing of ordinary Pozzolana Portland Cement. For availing the MODVAT credit they filed a declaration in respect of its explosive and grinding media balls. The Revenue was of the view that MODVAT credit would not he available to the assessee as the nature of grinding media balls is akin to appliance, equipment and tools. In respect of the explosive it was felt by the Revenue that the same are used in the mines which are outside the factory premises. The Assistant Collector declined to accept the contention of the assessee that the MODVAT credit was admissible on grinding media balls and explosive. On an appeal being preferred, the Commissioner (Appeals) overturned the finding of the Assistant Commissioner and held that MODVAT credit on explosive can be allowed if they are used by the manufacturer in the mines. With regard to grinding of media balls, the Collector (Appeals) accepted the contention of the assessee. Being aggrieved the Revenue preferred an appeal before the Customs, Excise and Gold (Control) Appellate Tribunal (in short 'the Tribunal' ). The Tribunal placed reliance on certain earlier decisions rendered by it and expressed the view that the MODVAT credit can be admissible on both the items.

(2.) AFTER the decision was rendered by the Tribunal the Revenue filed an application seeking a reference to this Court on the question of law which was formulated as under :-

(3.) THE Tribunal thought it to be a fit case and according drew up the statement of case and referred the matter to this Court.