AMBUJA CEMENT EASTERN LTD. Vs. CCE, RAIPUR

JUDGEMENT

(1.) THIS is an appeal filed by M/s. Ambuja Cement Eastern Ltd. is directed against the Order No. 191/RPR -1/2003 dated 28.5.2003 passed by the Commissioner of Central Excise & Customs (Appeal -I), Raipur. The Commissioner has held that CENVAT Credit is not admissible on Explosives used in the mines after 1.7.2001 in terms of Rule 2(f) of the CENVAT Rules, 2001. The facts of the case in brief are that the appellant company has availed the MODVAT Credit amounting to Rs. 15,78,836.00 (Rupees fifteen lakh seventy -eight amounting to Rs. 15,78,836.00 (Rupees fifteen lakh seventy -eight thousand eight hundred and thirty -six) on Explosives used in the mines outside the factory premises during the period from April, 2000 to June, 2001. The lower authorities had disallowed the entire amount of CENVAT Credit availed on Explosives and confirmed the demand under the show cause notice issued to the appellant company. The appellant company filed an appeal with the Commissioner (Appeals) who under his Order referred to above, disallowed the MODVAT Credit on the Explosives from 1.7.2001. The Commissioner (Appeals) has also directed the lower authority to quantify the CENVAT Credit to be allowed/disallowed in terms of the Order -in -Appeal. Being aggrieved with the Order -in -Appeal, the appellant company has filed this appeal. The appellants' main contentions are summarised as under: - -

(2.) I have heard Shri B.N. Chattopadhyay, learned Consultant for the appellant company and Shri J.R. Madhiam, learned JDR for the Revenue. Shri Chattopadhyay, learned Consultant has submitted that the Honourable Supreme Court in the case of Jaypee Rewa Cement v. CCE reported in, 2001 (133) ELT -3 (SC) :, 2001 (98) ECR 193 (SC), has held that Explosives used for the manufacture of the intermediate product, namely Limestone, which in turn, was used for the manufacture of Cement, are entitled for MODVAT Credit in terms of Rule 57A of Central Excise Rules, 1944 read with Rule 57J ibid. Shri Chattopadhyay, learned Consultant for the appellant company, also submits that after the amendment of CENVAT Rules, the Tribunal has allowed the MODVAT Credit in the case of Explosives used in the mines.