2012 (5) TMI 550

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... redit. So we modify the order to allow Cenvat credit on Acetylene Gas and Oxygen Gas also - words “captive mines” used in the said decisions have to be understood to mean assessee’s own mines rather than mine around one factory of the assessee. The mines by its very nature cannot be inside the factory. So credit cannot be denied for the reason that mines were situated 3 to 4 Kms away from the factory - So we hold that Cenvat credit on explosives used in mines is to be allowed in this case - Decided in favour of assessee.
Ms. Archana Wadhwa and Shri Mathew John, JJ. Shri Sanjay Grover, Advocate, for the Appellant. None, for the Respondent. ORDER In this proceeding Applications for Rectification of Mistake in Final Order Nos. 991 & 992 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... nt is relying on the decision of the Apex Court in the case of Vikram Cement v. CCE reported at 2006 (194) E.L.T. 3 (S.C.) according to which Cenvat credit on such material used in captive mines is allowed. In this case also the factory was situated at some distance away from the mines. 6. Revenue's argument is that Cenvat credit is available for inputs only if it is used within the factory premises. Revenue also draws attention to the fact there is difference between the wording of Rule 57AA in Central Excise Rules, 1944 which allowed credit prior to 2001 and the Cenvat Credit Rules, 2004 that were in force at the time when the disputed credit was taken. The latter specified that credit can be taken only in respect of inputs used in .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... (257) E.L.T. 321 (S.C.) and the Court held that credit will be available under the new rules also. 11. Further we are of the view that the words "captive mines" used in the said decisions have to be understood to mean assessee's own mines rather than mine around one factory of the assessee. The mines by its very nature cannot be inside the factory. So credit cannot be denied for the reason that mines were situated 3 to 4 Kms away from the factory. We also note that the argument of Revenue is that the ore from the mine was sent to two different factories of the same assessee. We do not think that this fact alters the status of the mine as a captive mine. So we hold that Cenvat credit on explosives used in mines is to be allowed in thi .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X