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TMI Blog1994 (5) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... heir final product i.e White Cement. The fact is that these explosives are used for mining of limestone. The adjudicating officer has held that the impugned inputs are not used as such individually but are arranged in a particular manner and sequence to act as a whole set for the purpose of blasting the mines, and the same are of the nature of the equipment and in-eligible to Modvat credit as held by the Tribunal in case of M/s. ACC Ltd. reported in 1990 (50) E.L.T. 295. On this point, I observe that the Tribunal has held that items to be used as consumer goods such as those for mining limestone are not inputs for cement. Therefore, the appellant s arguments on this point do not hold good. Further, it is a fact that mining area is not a par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacturers of cement. They filed a Modvat declaration under Rule 57G of the Central Excise Rules, 1944 wherein they declared various explosives and grinding balls of Iron and Steel as inputs used in or in relation to the manufacture of cement. The appellant have been allotted mining rights for mining of limestone. The appellant used explosives like safety fuses, detonating fuses, percussion or detonating caps, Ignitors, electric detonators. The appellant also uses grinding balls of Iron and Steel in grinding mills for crushing and powdering of the stone used for the manufacture of the cement. 3. Shri R. Swaminathan, the ld. Advocate appearing for the appellant submitted that explosives and grinding media (Steel Balls) are used in relatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o discern on which side of the borderline a particular case falls." The ld. Counsel for the appellant submitted that the mines are taken on lease by the appellant and limestone is quarried by use of explosives, thus the process of mining is very integrally connected with the entire process of manufacture of cement and, therefore, explosives as well as grinding media should be considered as inputs by following the ratio of the decision of the Apex Court cited supra. The ld. Counsel also submitted that in so far as explosives are concerned their case is fully covered by the ratio of the decision of the Tribunal in the case of Associated Cement Co. Ltd., reported in 1991 (55) E.L.T. 415 and in regard to grinding media balls their case was co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the decisions of the Supreme Court in the case of CCE v. Ballarpur Industries Ltd. as also the Indian Copper Corpn. Ltd. v. Commissioner of Commercial Tax, Bihar and others. Some of these decisions have been referred to by the Tribunal while examining the case of M/s. Associates Cement Co. The relevant portion of the decision of the Tribunal reported in 1991 (55) E.L.T. 415 [Paras 10, 11 12] is reproduced below:- * * * * * * Thus, it would be seen that the Tribunal had held that explosives are inputs used in or in relation to the manufacture of cement. I agree with this decision of the Tribunal. Grinding Balls issue was examined by the Tribunal in the case of Sri Ram Cement Works v. CCE, Jaipur. The Tribunal had held that :- Now e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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