TMI Blog2012 (4) TMI 534X X X X Extracts X X X X X X X X Extracts X X X X ..... on of inputs. Explanation 1 to the clause leaves no doubt whatsoever that LDO, High Speed Diesel Oil and Motor Spirit shall not be treated as input for any purpose whatsoever. The provisions of Cenvat Credit Rules (w.e.f. 01.03.2003) exclude HSD and LDO from the definition of input in unequivocal terms and there is no ambiguity or confusion in the provisions. Intent, purpose and object of the amendment are clear that Government modified the rules to bar credit on LDO by excluding it from the inputs as defined under the cenvat credit Rules irrespective of its use. HSD always remain outside the ambit. - hat an item is used in the manufacture of final goods is not sufficient to define it as input. Motor Spirit, High speed Diesel and LDO are sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submissions in respect of appeal No.E/765/10. Therefore it is felt that it would be proper to decide appeal No.E/765/10 separately and give the appellants another opportunity to appear for personal hearing in respect of appeal No.E/765/10. Accordingly, only appeal No.E/764/10 is taken up for final decision. 2. The issue involved in the appeal is the admissibility of cenvat credit on LDO and HSD. As done when the appeal was considered by the Commissioner (Appeals) in the impugned order, the appellants are making the same submissions before me also namely LDO and HSD are inputs and have been used in generation of electricity and therefore cenvat credit is admissible. I find that the Commissioner (Appeals) in the impugned order has consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d is purely question of law and in particular interpretation of definition of inputs. During the hearing the appellant's only contention is that HSD and LDO is input considering the usage criterion. That an item is used in the manufacture of final goods is not sufficient to define it as input. Motor Spirit, High speed Diesel and LDO are specifically excluded from the purview of inputs. Even if HSD and LDO is used in the manufacture of final goods, it cannot be considered as input for purpose of credit under the Rules ibid. When an item has been specifically excluded from the definition, the usage criterion cannot bring it in the ambit of definition. The contention of the appellant defies logic and commonsense. In view of the above, the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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