Cce, Raipur Vs. M/S. Jay Pee Rewa Cement - Court Judgment

Excerpt:
1. the commissioner of central excise, raipur had prayed that the following questions of law arising out of the tribunal's final order no.a/481/99/nb (sm) dated 25.05.99 be referred to the madhya pradesh high court:- " whether or not modvat credit is available on explosives used in mining of lime stone, which are not covered under the definition of factory in terms of section 2 (f) of the central excises act, 1944 read with rules 57 a of the central excises rules, 1944." 2. in this case, the matter related to the modvat credit in respect of the explosives used in mining area of the respondents' cement plant.following the tribunal's decision in the respondents' own case in appeal no.e/765 to 768/97 nb under order no.a/163-166/99-nb (db) dated 16.3.99, the tribunal took a view that there.....

Judgment:
1. The Commissioner of Central Excise, Raipur had prayed that the following questions of law arising out of the Tribunal's Final Order No.A/481/99/NB (SM) dated 25.05.99 be referred to the Madhya Pradesh High Court:- " Whether or not modvat credit is available on explosives used in mining of lime stone, which are not covered under the definition of factory in terms of Section 2 (f) of the Central Excises Act, 1944 read with Rules 57 A of the Central Excises Rules, 1944." 2. In this case, the matter related to the modvat credit in respect of the explosives used in mining area of the respondents' Cement Plant.

Following the Tribunal's decision in the respondents' own case in Appeal No.E/765 to 768/97 NB under Order No.A/163-166/99-NB (DB) dated 16.3.99, the Tribunal took a view that there was no infirmity in the view taken by the Commissioner of Central Excise (Appeals), Bhopal, whose order was challenged before the Tribunal.

3. After hearing Shri Bhima Shankar, SDR and Shri Sekhar Vyas, Advocated; we find that in the Larger Bench decision in the case of M/s. Jaypee Rewa Cement Vs. Commissioner of Central Excise = 2000 (38) RLT 1111 (CEGAT -LB), the above Tribunal's decision had not been agreed to and a view has been taken by the Larger Bench of the Tribunal that the explosives were not eligible inputs and no modvat credit was available with regard to such explosives. Both the sides agreed that the similar questions had already been referred to the different High Courts and in particular, the reference was made to the Appeal No.E/2162/97-NB. while disposing of the reference application filed by the Revenue under Reference Order No.R/184/2000-NB (SM) dated 5.7.2000, the following questions of law has been referred to Madhya Pradesh High Court:- " Whether modvat credit on inputs in respect of explosives in terms of Rule 57 A of the Central Excise Rules is admissible or not." 4. In view of the above position, the similar question is referred to the Hon'ble Madhya Pradesh High Court in the present case also. As the reference has already been made to avoid duplication, this matter will be kept pending and the view taken by the Hon'ble Madhya Pradesh High Court will be applicable with regard to the present reference application filed by the Revenue. However, this matter may also be tagged with the same reference and the reference to the Hon'ble High Court be made in similar terms. the reference as dictated be forwarded to the Hon'ble High Court.

" This reference application has been filed to refer the above question on the ground that with the reference to the Tribunal's Final Order No.A-481/99-NB (SM) dated 25.5.99, it is seen that the similar question in appeal No.E/2607/98-NB has already been referred to the Hon'ble Madhya Pradesh High Court. On similar terms, the following question in this appeal also, is referred to the Hon'ble High Court of Madhya Pradesh for their considered view." Registry may do the needful. As a result, the appeal filed by the Revenue is allowed. Ordered accordingly.