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of <h1>Tribunal grants appellant CENVAT credit for explosives and lubricants in cement production</h1> <h3>M/s. Tamil Nadu Cements Corporation Ltd. Versus CCE, Tirunelveli</h3> M/s. Tamil Nadu Cements Corporation Ltd. Versus CCE, Tirunelveli - TMI Issues:1. Compliance with High Court direction and deposit for condonable delay.2. Eligibility of CENVAT credit for explosives and lubricants used in mining area.3. Dispute over the utilization of vehicles and location of explosives.4. Interpretation of legal precedents and rules regarding CENVAT credit.5. Entitlement to CENVAT credit for explosives and lubricants based on usage.Analysis:Issue 1:The appellant claimed compliance with the High Court's direction and the deposit made for condonable delay, which led to the restoration of the appeals for hearing on merit due to no objection from the Revenue.Issue 2:The appellant argued for CENVAT credit for explosives and lubricants used in the mining area connected with cement manufacturing, citing legal precedents like Vikram Cement and Jaypee Rewa Cement cases. The appellant contended that the explosives and lubricants were essential for the manufacturing process and thus eligible for credit.Issue 3:The Revenue disputed the appellant's claim, stating that vehicles were solely used for transporting raw materials from mines to the factory, and explosives were utilized in mines located 3 kms away from the factory. The Revenue argued that these factors rendered the appellant ineligible for CENVAT credit.Issue 4:The Tribunal considered the interpretation of legal precedents and rules, specifically referencing the Vikram Cement case and the replacement of 1944 Rules by the CENVAT Credit Rules, 2000. The Tribunal highlighted the widening scope of 'input' under the new rules and emphasized the continuity in the application of MODVAT credit principles.Issue 5:After analyzing the facts and legal principles, the Tribunal concluded that there was a clear link between the explosives and lubricants used in the mining area and the final product of cement manufacturing. The Tribunal found the appellant entitled to CENVAT credit based on the essential role of these inputs in the production process, ultimately allowing both appeals in favor of the appellant.
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