9911796707
TMI Blog2002 (1) TMI 732X X X X Extracts X X X X X X X X Extracts X X X X ..... /98 (M-III), dated 4-9-98 on the following grounds : 1.0. Mining and metallurgy are an integrated process of manufacture : 1.1. There is no dispute about the fact that the concentrates which are made out of ore extracted from our Zawar Mines by blasting the underground material by means of explosives is used in the manufacture of our prime metals, viz., Zinc and Lead. Modvat is also given on the explosives used in the mines which are situated far away from the factory. The Honourable East Zonal Bench of the CEGAT at Calcutta has allowed Modvat Credit on such explosives -- vide Commissioner of Central Excise, Bhubaneshwar v. OCL (I) Ltd. in 1998 (28) RLT 643 (Page Nos. 9 to 10 of P.B). 1.2. When our supplier at Vellore did ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Shri G.S. Menon, took me to the finding of the Assistant Commissioner contained in Para 4 of the Order-in-Original No. 8/97, dated 20-6-97 which is extracted herein below : "I have carefully gone through the records of the case and their replies to the show cause notice, Notification 7/94-C.E., dated 1-3-1994 exempts goods falling under Chapter 36 from payment of duty if used in the manufacture of zinc or lead concentrates and if the use is elsewhere than in the factory of production the exemption is subject to the observance of Chapter X Procedure. In their reply the applicant have contended that mining and manufacture are an integrated activity in the extraction of Zinc concentrates and that when substantive condition were compli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... findings of the Commissioner (Appeals) and this certificate only discloses that the appellant is having a Registration Number and are availing Modvat Credit under Rules 57A and 57G of the C.E. Rules, 1944. The Appellant was required to follow statutory procedure as contained in Rule 192 which is a mandatory procedure and the appellant should have obtained CT-2 certificate from the Supdt. of Central Excise, Udaipur Range who would have certified about the eligibility of the appellant to procure explosives without payment of duty. This is not simply procedural and it in fact is a statutory procedure which is substantive in nature and where the Central Excise officers supervise each and every activity. In the absence of L-6 licence and as wel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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