Judgment:
1. This is an appeal filed by the appellant against denial of Modvat credit on explosives used in the mines fromwhere lime stone is produced for use in the factory.
2. The facts of the case in brief are that the appellant is a cement factory, For manufacture of cement lime stone is one of the raw-materials. Lime stone is procured from in the mines, For breaking the rocks containing lime stone explosives are used. The appellant submitted that explosives are inputs and therefore, they should be allowed the benefit of Modvat credit on explosives. The authorities below denied them the benefit and hence the appeal before me.
3. Arguing the case for the appellant Shri R.C.Pandey, Ld. Counsel in his usual fairness submits that the issue has been decided against the appellant by the Larger Bench of this Tribunal in the case reported in 2000(38)RLT.1111, He submits that his only contention is that an appeal against this order of the Larger Bench of this Tribunal has been admitted in the Supreme Court. He, therefore, submits that since appeal has been admitted, the case may be decided taking that aspect in view.
4. Shri M.D.Singh, Ld. DR for Revenue submits that since the matter has been decided by the Larger Bench of this Tribunal against the assessee and since the order of the Larger Bench has not been stayed by Supreme Court, admission of appeal against the order does not make that order of the Larger Bench of this Tribunal in-operative. He, therefore, submits that the appeal may be rejected.
5. I have heard the rival submissions. I note that the issue has been decided by the Larger Bench against the assee. I agree with the pleas of the Ld. DR that admission of appeal is Supreme Court does not make the order appealed against in-operative. Following the ratio of the decision of the Larger Bench in the case cited above, I hold that Modvat credit will not be admissible to the assessee on explosives. The stay petition and appeal are, therefore, rejected.