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TMI Blog2005 (8) TMI 493X X X X Extracts X X X X X X X X Extracts X X X X ..... cement factory, which are called West Block and North Block. The West Block mine is spread over three villages viz. Dalavoi, Danakurichi and Mullukurichi and the North Block mine is comprised in two villages viz. Alathiyur and Kottaikadu. West Block mine is about 250 mtrs. away from the rear gate of the factory compound. The North Block mine is at a distance of about 11/2 kms. from the said gate. The entire mining area is separated from the factory compound by a small brook/canal (Anavari Odai) which is lying outside, and parallel to, the rear boundary wall of the factory compound. These facts reported by the Commissionerate are not in dispute. A Location Plan produced by the appellants counsel also indicates that the factory compound an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entral Excise Registration Certificate (under Rule 174 of the Central Excise Rules, 1944) or thereafter. However, ld. Consultant has contested the department s claim that there was no legal requirement of having to issue approved plan to registered manufacturers. It is pointed out that the proper officer of Central Excise was required, under Rule 44(3), to issue a Certificate of Approval to a registered manufacturer who had submitted his factory plan along with declaration of factory premises and equipments. Ld. Consultant has also referred to the provisions of Rule 174 as well as to the CBEC s Excise Manual of Supplementary Instructions on the above aspect. According to these instructions, a duplicate copy of the plan should be returne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s judgment in the case of Aditya Cement v. UOI, 2002 (141) E.L.T. 623 (Raj.), wherein it was held that the manufacture of cement was a continuous integrated process commencing with the extraction of limestone from mines and hence explosives used for blasting operations for producing limestone were eligible for input duty credit. It is pointed out that the S.L.P. filed by the Revenue against the High Court s judgment was dismissed on merits by the Apex Court vide 2003 (152) E.L.T. A93 (S.C.). Countering these arguments, ld. SDR has relied on the Supreme Court s judgment in J.K. Udaipur Udyog Ltd. (supra), wherein it was observed that a mine, which was situated at some distance, from where the raw material was extracted, could not qualify ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for Modvat credit should be used within the factory of production of final product. Again, in the case of J.K. Udaipur Udyog Ltd. (supra), it was held by their lordships that no manufacturing activity was involved in the excavation of limestone. Read together, the judgments of the Apex Court in Jaypee Rewa Cement and J.K. Udaipur Udyog Ltd. (supra) would decide the instant issue against the appellants. Accordingly, it is held that the capital goods used by the appellants in their mining area were not eligible for Modvat credit under Rule 57Q during the period of dispute. The decision of the Rajasthan High Court cannot be followed in this case inasmuch as it is contrary to the Supreme Court s ruling in J.K. Udaipur Udyog Ltd. I have noticed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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