High Court overturns Tribunal decision, grants credit for excise duty on explosives in mines

The High Court allowed the appeal, overturning the Tribunal's decision and granting the appellant the right to credit excise duty paid on explosives used in mines for cement manufacturing, following a recent Supreme Court ruling in Vikram Cement v. Commissioner of Central Excise, Indore. No costs were awarded, and miscellaneous petitions in the appeal were disposed of.

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Issues:
- Whether excise duty paid on explosives used in mines for manufacturing cement can be credited under the CENVAT schemeRs.

Analysis:
The appellant, a cement manufacturer, sought credit for excise duty paid on explosives used in mines for extracting raw material. The Excise Commissioner denied the credit, leading to an appeal before the Customs, Excise & Service Tax Appellate Tribunal. The Tribunal, following a previous Supreme Court judgment, rejected the claim. However, a recent Supreme Court ruling in Vikram Cement v. Commissioner of Central Excise, Indore overturned the earlier decision, allowing credit for duty paid on explosives used in mines for cement manufacturing.

The High Court, considering the new Supreme Court judgment, allowed the appeal and set aside the orders of the Tribunal and Assessing Authority. Consequently, the appellant was granted the right to avail credit for excise duty paid on explosives used in mines for cement manufacturing during the relevant period. No costs were awarded, and miscellaneous petitions in the appeal were also disposed of.

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