Cenvat credit on cement used as construction material for plant foundations was denied because it was not an eligible input.

Cement used as building construction material for erecting plant and machinery did not qualify as an eligible input for Cenvat credit under Rule 2(g) of the Cenvat Credit Rules, 2002. The court treated the issue as covered by an earlier decision in the assessee's own case and held that the claimed distinction between use in a foundation and use in a roof was immaterial because the decisive factor was the character of the cement as construction material. Credit was therefore unavailable.

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Issues: Whether cement used as a construction material for erecting plant and machinery was eligible for Cenvat credit under Rule 2(g) of the Cenvat Credit Rules, 2002.

Analysis: The controversy was held to be covered by an earlier decision in the assessee's own case, where cement used as a construction material was found not eligible as input for Cenvat credit. The attempted distinction that the cement was used for a foundation for plant and machinery rather than for a roof was held to be immaterial, because the governing consideration was the use of cement as building construction material. On that basis, the material did not qualify as an eligible input for credit.

Conclusion: The cement was not eligible for Cenvat credit, and the appeal failed.

Ratio Decidendi: Cement used as building construction material is not an eligible input for Cenvat credit under Rule 2(g) of the Cenvat Credit Rules, 2002, even if used in connection with plant or machinery construction.

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