COMMISSIONER OF C. EX. Vs. MADRAS CEMENTS LTD.

JUDGEMENT

(1.) RESPONDENTS are manufacturer of Cement and Clinker. The basic ingredient necessary for the purpose of manufacture of Clinker and Cement is lime stone. Lime stone is quarried by the assessee from its own mines and intended only for the manufacture of cement in its own factory at Jayanthipuram. Lime stone is quarried by the respondents using (i) explosives and (ii) Ammonium Nitrate (prilled). They had filed declaration before the competent authority on 23 -6 -1987 in terms of Rule 57G of C.E. Rules read with 57A and Notification No. 177/86, dated 1 -3 -1986 to avail Modvat benefit by way of credit of duty paid on the above named inputs under Rule 57A .

(2.) THE lower authority rejected their claim. However, the first appellate authority allowed the claim of the assessee. Therefore, the Revenue was aggrieved with the order and had filed an appeal challenging the grant of Modvat credit by the Commissioner (Appeals). The Tribunal referred the matter to Larger Bench and by Final Order No. 375/1992, dated 13 -6 -1995, the Larger Bench of the Tribunal allowed the Revenue's appeal and held that assessees are not entitled to the Modvat credit in respect of the above named inputs.

(3.) THEREFORE the respondents/assessee in these Reference applications seek reference of the following questions to the High Court : -