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2013 (8) TMI 503 - MADHYA PRADESH HIGH COURTExplosives as Inputs – Eligibility for MODVAT - Whether the Explosives used in mines for blasting lime stone can be considered as inputs eligible for MODVAT in terms of Rule 57A of Central Excise Rules, 1944 -Held that:- The explosives used in mining by blasting limestone can be considered as input eligible for MODVAT credit in terms of Rule 57-A of the Rules – following Jaypee Rewa Cement Vs. Commissioner of Central Excise, M.P. [2001 (8) TMI 1332 - SUPREME COURT OF INDIA ] and Vikram Cement Vs. Commissioner of Central Excise, Indore [2006 (1) TMI 130 - SUPREME COURT OF INDIA]. If the manufacturer of cement was using duty paid explosives for mining limestone and using such limestone to manufacture cement, though the explosives were not brought within the factory, the manufacturer by virtue of rule 57-A read with Rule 57-J was entitled to MODVAT credit in respect of duty paid on the input - the explosives for blasting mines to produce limestone for use in manufacture of cement/clinkers in factory situated at some distance away from mines, MODVAT cannot be denied on the ground that they were not used as inputs within factory – Decided in favor of assesse.
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