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

Cement used as building or construction material for laying a foundation and erecting plant and machinery was held not to qualify as an input for Cenvat credit under Rule 2(g) of the Cenvat Credit Rules, 2002. The court treated the dispute as governed by its earlier decision in the assessee's own case and found that any distinction between cement used for roof safety and cement used for foundation was immaterial. Applying that settled view, the credit claim was rejected and the appeal failed.

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

Analysis: The dispute was treated as covered by an earlier decision in the assessee's own case, where cement used as construction material was held not to qualify as an input for Cenvat credit. The attempted distinction based on use of cement for roof safety in one case and for foundation in the present case was held to be immaterial, because the controlling consideration was the use of cement as building construction material. On that basis, the prior ruling was applied and the credit claim was rejected.

Conclusion: The cement was not eligible for Cenvat credit, and the assessee's claim failed.

Final Conclusion: The appeal was dismissed by applying the settled view that cement used as construction material does not qualify for Cenvat credit under the relevant rule.

Ratio Decidendi: Cement used as building or construction material, including for foundation work, is not an eligible input for Cenvat credit under Rule 2(g) of the Cenvat Credit Rules, 2002.

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