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2016 (12) TMI 914 - CESTAT ALLAHABADWhether they are entitled to Cenvat credit on the cement used in the foundation of machineries erected which have been further used for manufacture of taxable or dutiable products? - reliance placed in the case of Union of India Versus Hindustan Zinc Limited [2007 (8) TMI 127 - HIGH COURT, RAJASTHAN] by ld. Commissioner (Appeals), where it was held that Revenue plea that the cement being a building material used the purpose of building construction can’t be said as input used for manufacturing of final product and that no Cenvat credit is available so far as cement as concerned - Held that: - I find that the ld. Commissioner (Appeals) have erred in relying on the ruling of Hon’ble Rajasthan High Court in the case of Union of India Versus Hindustan Zinc Limited as the said ruling was in respect of Cenvat Credit Rules, 2002 which have been replaced by Cenvat Credit Rules, 2004. Under the new rules the scope of input have been enlarged. That Cement and Iron & Steel used in supporting structure for erection of plant & machinery are eligible as inputs. It is further held that inputs are not necessarily to be used in the manufacture of final products. An input may be used even in relation to manufacture of final product. In the facts and circumstances of this case, cement has been admittedly used in the erection of capital goods, being machinery, without which manufacture of dutiable goods is not possible. Accordingly, both the appeals are allowed with consequential benefits, if any, in accordance with law. The impugned orders are set aside - appeal allowed - decided in favor of appellant-assessee.
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