TMI Blog2012 (11) TMI 961X X X X Extracts X X X X X X X X Extracts X X X X ..... xamining the above stated articles, it is found that all the articles – explosives are used for manufacture of cement and in absence of any of the above stated goods, manufacture of cement is not possible. Applying the 'user test' as laid down by the Supreme Court in the above referred case, the decision of the Tribunal is just, proper and legal - reference is answered accordingly. - CENTRAL EXCISE REFERENCE No 48 of 1999 - - - Dated:- 6-8-2012 - Shri Satish K Agnihotri Honble Shri Radhe Shyam Sharma JJ Shri Manish Sharma Advocate for the applicant Shri Ashish Shrivastava Advocate for the respondent O R D E R Per SATISH K. AGNIHOTRI, J 1. The instant reference has been made by the Customs, Excise Gold (Contr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under: (a) Explosives : The `Explosive' viz. Safety Fuses, detonating Fuses, Denoling Caps, Igniters are used for blasting in the lime stone mines situated one to five kilometers away from the cement factory. The `Explosives' are used in the `mines' governed under the Mines Act, in relation to mining of lime stone and not in the factory. (b) Grinding Media (Steel Balls) and Cylpebs: Grinding Media (Steel Balls) and Cylpebs are used in the Cement Ball Mill for grinding the Clinker to obtain cement. These are specially cast steel balls which are used to grind the cement in a rotary cement ball mill. Where they strike against each other and against the wall of the ball mill and crush the clinker which comes in their way. The clinker ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... very nature are component, parts of various machines which are used for either reducing the friction and/or to provide for a rotary movement to various motors and similar machines, machinery. They can be input for machines but not input in relation to manufacture of cement. (f) Electrodes: These electrodes are "arc welding electrodes" which are used for welding metal parts or for maintenance of various machines. These "arc welding electrodes could be inputs in relation to manufacture of machines but not as an "input" in relation to manufacture of "clinker" or "Cement". The arc welding electrodes are different that the "graphite electrodes" and "mercury anode" electrodes which are used by Chloro Alkali Plants for electrolysis of commo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacture, as defined in Rule 57-AB, of final products takes place for the purpo se of availing of credit, came up before a Bench of three Judges in Jaypee Rewa Cement v. CCE. As in this case, in that case the input in question was explosives which were used in quarrying limestone used in the manufacture of cement. The Court came to the conclusion on a consideration of the Rules which we have already quoted, that sub-rule (1) of Rule 57-A did not in any way specify that the inputs have to be utilized within the factory premises. The Tribunal had relied upon Rule 57-F in coming to the conclusion that the inputs in respect of which credit of duty was claimed must be those which were used in or brought into the factory premises. In reversi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cordingly allowed and it was held that MODVAT was allowable on the use of the explosives in the manufacture of cement irrespective of the fact that the explosives were used directly in the mines and never entered the factory of the manufacture of cement. 25. In our opinion the doubt expressed by the referring Bench about the correctness of the decision in CCE v. J.K.Udaipur Udyog Ltd. was well founded. Having regard to the fact, that the CENVAT Rules in effect substitute the MODVAT Rules, the decision in Jaypee Rewa Cement would continue to apply. The decision in CCE v. J.K.Udaipur Udyog Ltd. holding to the contrary is, in our opinion, not good law. The reference is answered accordingly. All the appeals and special leave petitions will no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sh v. Commissioner, Central Excise, Meerut-I4, the Supreme Court interpreted the definition of `input' as defined in Rule 2(g) of the CENVAT Credit Rules, 2002, as under: "15. Therefore, it is trite that generally the word "include" should be given a wide interpretation as by employing the said word, the legislature intends to bring in, by legal fiction, something within the accepted connotation of the substantive part. (Also see CIT v. Taj Mahal Hotel, Indian Drugs Pharmaceuticals Ltd. v. ESI Corpn. and T.N.Kalyana Mandapam Assn. v. Union of India). It is also well settled that in order to determine whether the word "includes" has that enlarging effect, regard must be had to that context in which the said word appears. (See: South Gu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
