CENTURY CEMENT Vs. CCE

JUDGEMENT

(1.) The appellants are cement manufactures. They use explosives in their off -factory mines for mining of limestone which is is required for the manufacture of cement. They took input duty credit on such explosives over a period viz. april 2000 to Feb., 2002. The original authority disallowed the entire credit by relying on the Supreme Court's decision in Jaypee Rewa Cement Vs. Commissioner of Central Excise, 2002 -TAXINDIAONLINE -97 -SC -CX, wherein it had been held that explosives used by cement manufacturers in their off -factory mines were eligible capital goods for the purpose of Rule 57Q of the erstwhile Central Excise Rules, 1944. In the appeal preferred by the assessee against the decision of the original authority, Id. Commissioner (Appeal) allowed the credit on explosive for the period upto 30.06.2001 and disallowed the credit taken on the item for the subsequent period (July, 2001 to Feb., 2002). The present appeal of the assessee is against the denial of credit for the latter period.

(2.) Heard both the sides.

(3.) Ld. Counsel for the appellants submits that, for the period April, 2000 to June 2001, Id. Commissioner (Appeals) has allowed input duty credit on explosives by following the ratio of the decisions rendered by this Bench in Commissioner Vs. J.K. Udaipur Udyog Ltd, 2002 -TAXINDIAONLINE -85 -CESTAT -DEL, and Commissioner Vs. Birla Corporation Ltd, 2002 -TAXINDIAONLINE -62 -CESTAT -DEL. Ld. Counsel argues that the ratio of the said decisions, rightly applied by the lower appellate authority to the Modvat credit for the period up to June 2001, is equally applicable for the subsequent period. Elaborating this point, counsel refers to the relevant rules, The Rule which defined the expression 'input' for the period April, 2000 to June 2001 is Rule 57AA (d) of the Central Excise Rules, 1944. The corresponding provision for the subsequent period is Rule 2 (f) of the CENVAT Credit Rules, 2001. The provisions referred to by the Counsel read as under : -