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2019 (1) TMI 902 - CESTAT NEW DELHICENVAT Credit - inputs - cement used in mine for filling the pits after extraction of ore - denial of credit on the ground that there is no relation with the manufacture or clearance of the final product - Held that:- Perusal of record shows that there has been a permission under the aforesaid regulation in favour of the appellant vide which the appellant was permitted to conduct stopping operations of the ore block by making use of impugned cement and the method of extraction shall be by VRM Stopping method post filled by mill failing mixed with cement in the ratio as prescribed therein. The permission specifically recites that extraction of ore from the proposed area shall be commenced only after proper settlement and consolidation of the fill of stopped out ore block, immediately below the proposed ore block. Perusal of these clauses in the permission by the mines department in favour of the appellant makes it abundantly clear that filling of the open ore pits with cement was a mandatory prerequisite for the appellant to extract ore - the cement used herein is something which has relation, though indirectly, with the extraction of ore thus it qualifies for input as defined under Rule 2(k), prevailing during the relevant period. Without filling of the ore pits the appellant was statutorily, not in position to extract the ore, i.e. the final product thus, the use of cement was very much in relation to the manufacture, which was extraction of ore - the appellant is entitled to treat the same as input. Thus, the adjudicating authority below has committed an error while denying the credit on cement used by appellant in filling pits for making area fit for ore extraction - credit allowed - appeal allowed - decided in favor of appellant.
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