1. Revenue has filed this application stating that points of law reading as : "Whether Modvat credit is available on Explosives used in mining of limestone, which are not covered under the definition of 'factory' in terms of Rule 57A of Central Excise Rules or not and whether Modvat credit will be admissible on furnace oil which is supplied by the depot/installation of M/s. Indian Oil who are not registered dealer in terms of Rule 57GG arises out of Tribunal's final order dated 16.03.1999.?" 2. Arguing the case for the appellant Shri S.K. Das, Id. JDR submits that Tribunal by its Final Order Nos. A/163-66/99-NB, dated 16.03.1999 held that Modvat credit was available on Explosives. In holding so the Tribunal had relied upon their earlier decisions in the case of Indian Rayon and Industries Ltd. v. CCE reported in 1995 (76) E.L.T. 358 and in the case of CCE v. New Vikram Cements "6. As regards denial of Modvat credit on furnace oil for the reason that credit was taken on the basis of invoices issued by the Indian Oil Corporation Depot at Satna which was not registered with the Central Excise authorities, we find that there is no dispute that the input in question viz. furnace oil had been manufactured by Indian Oil Corpn. who is registered with the Central Excise authorities. It is common ground between the parties that the manufacturer viz. Indian Oil Corporation were operating through various outlets for sale of furnace oil. There is also no dispute that such sales are covered by invoices of Indian Oil Corpn. In these circumstances even if the Satna Depot had not been registered with the Central Excise Department, the fact remains that the invoices are in the name of the Indian Oil Corporation. Mere fact that the invoices do not contain the name and address of the Indian Oil factory/Refinery from which furnace oil was received cannot be a ground for disallowing Modvat credit. We therefore, accept the contention of the appellants that in the facts of the case, the lapse on their part was only a procedural one and the Modvat credit should have been allowed to them as they have complied with the substantive part of rules".
4. He submits that insofar as Explosives are concerned, they are used away in the mining area. He submits that Rule 57A of the Central Excise Rules inter alia provides that Modvat credit shall be taken in respect of the goods used in the manufacture of final product in the factory .
A larger Bench of this Tribunal held that Modvat credit shall not be admissible in respect of Explosives as the same are not used inside the factory for the production of the finished product. We note that while deciding the issue earlier, the Tribunal had not taken this point in view inasmuch as it was noted that in a large number of cement factories, a mining area is adjacent to the factory as recognised under the excise law. The fact remains that the factory has a definite connotation under the Excise law and Explosives normally are not used in the manufacture of lime-stone in the factory. We, therefore, hold that a point of law arises and needs to be referred to the Hon'ble Madhya Pradesh High Court at Jabalpur.
5. Insofar as furnace oil is concerned, we note that furnace oil in the instant case was being supplied by the outlet at Satna of the Indian Oil Corpn. This outlet was preparing documents in terms of Rule 57GG.Since the documents were in terms of Rule 57GG, therefore, registration of the outlet with the Excise authorities was a statutory requirement.
We note that in the case against which the present application has been preferred, this aspect was not considered. We consider this aspect to be an important one and therefore, a point of law arises for reference to the Hon'ble Madhya Pradesh High Court.