2004 (8) TMI 700 - AT - Central Excise

Summary

Issues:
Admissibility of Cenvat Credit on Explosives used in mines after 1-7-2001 under Rule 2(f) of Cenvat Rules, 2001.

Analysis:
The appeal was filed against the Order disallowing Cenvat Credit on Explosives used in mines after 1-7-2001. The appellant argued that Explosives were used in manufacturing the final product and fulfilled the conditions of 'Input'. They cited Tribunal cases where Cenvat Credit on Explosives used in mines was allowed. The appellant relied on the similarity between the definitions of 'Input' in different rules. The appellant also referred to a Supreme Court case supporting the eligibility of Explosives for Modvat Credit. The Tribunal noted previous decisions allowing Cenvat Credit on Explosives used in mines and set aside the Order disallowing the credit.

The appellant's consultant cited various Tribunal decisions supporting the eligibility of inputs used in mines for Cenvat Credit. The consultant highlighted that the same Commissioner had allowed Cenvat Credit on Explosives used in mines for the production of goods in a previous order. The Revenue did not appeal this decision, indicating acceptance. The consultant argued for allowing the appeal based on the previous decisions and the Order-in-Appeal.

The Tribunal reviewed the arguments and case laws presented. Considering the precedents and decisions cited by the appellant, the Tribunal overturned the Commissioner's decision and allowed the appeal. The Tribunal emphasized the eligibility of inputs used in mines for Cenvat Credit based on the established legal interpretations and previous rulings.