Cenvat credit on lubricants used in dumpers upheld where the goods were not specifically excluded from input coverage.

Lubricants used in dumpers operating in the mining area were treated as eligible inputs for Cenvat credit because the definition of "input" covered goods used in the factory or in relation to manufacture unless specifically excluded. The fact that the dumpers were not treated as capital goods for the assessee's activity did not, by itself, justify denial of credit on lubricants used in them. Credit on duty paid on lubricants was therefore admissible, and a restrictive reading of capital goods classification could not override the broader input definition.

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Issues: Whether lubricants used in dumpers in the mining area were eligible as 'input' for Cenvat credit under the Cenvat Credit Rules.

Analysis: The definition of 'input' was construed as and covering all goods used in the factory of the manufacturer or producer, except goods specifically excluded. Lubricants were not included in the excluded category, and the mere fact that dumpers were not treated as capital goods for the assessee's activity did not by itself deny credit on lubricants used in them.

Conclusion: Cenvat credit on the duty paid on lubricants was admissible and the denial of credit was unsustainable.

Ratio Decidendi: Where a goods item is used in the factory or in relation to manufacture and is not specifically excluded by the definition of 'input', Cenvat credit cannot be denied merely on a restrictive reading of the capital goods classification.

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