The mining area is at a distance of few kilometers from the plant where the cement is manufactured.
Feeling aggrieved by the order of the Commissioner Appeals , the Revenue preferred an appeal before the CEGAT, but the same was dismissed.
The Assistant Commissioner, Central Excise, issued a numberice to the assessee on 18.4.2001 on the ground, inter alia, that the explosives used for blasting purpose in the mines had number been used in the factory premises for production or in relation to the manufacture of final product i.e. cement that as per Rule 57AB, the input must be used within the factory of production and, therefore, the explosives do number qualify to be inputs for the manufacture of excisable goods in terms of the aforesaid rule.
During the period April to August 2000, the assessee took CENVAT Credit under Rule 57AB of the Central Excise Rules for short Rules on the explosives used in mines.
214/86 Central Excise, dated 25th March, 1986 vide GSR No.
214/86 dated 25th March, 1986 and received by the manufacturer for use in or in relation to the manufacture of final products.
7259 7261/2003 P. MATHUR, J. These appeals by special leave have been preferred by the Commissioner of Central Excise, Jaipur II, against the judgment and order dated 20.8.2002 of Customs, Excise Gold Control Appellate Tribunal, New Delhi for short CEGAT by which the appeal preferred by the appellant against the order of Commissioner Appeals allowing CENVAT Credit to the respondent M s. J.K. Udaipur Udyog Ltd., on explosives used in mines was dismissed.
The assessee carries on the business of manufacturing cement falling under Chapter 25 of the Schedule to the Central Excise Tariff Act, 1985.
The assessee has been granted a mining lease by the Government of Rajasthan and the limestone excavated from the mines is used for manufacture of cement.
with C.A. Nos.
Explosives are used for blasting purpose in the mines.
