https://www.taxtmi.com/caselaws?id=787651 Whether Rule 3(5) of the Cenvat Credit Rules, 2004 required reversal of credit on explosives supplied to contractors for use in the appellant's own mines was examined; the governing principle applied is that reversal is mandated only where inputs are not used in or in relation to manufacture or are removed as such. Supplies to contractors for mine development and extraction used to produce the assessee's final product do not constitute removal of inputs, so Rule 3(5) does not apply and the credit need not be reversed; the impugned demand was set aside. en-us Thu, 19 Feb 2026 00:00:00 +0530 Tue, 10 Mar 2026 08:52:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=787651 Whether Rule 3(5) of the Cenvat Credit Rules, 2004 required reversal of credit on explosives supplied to contractors for use in the appellant's own mines was examined; the governing principle applied is that reversal is mandated only where inputs are not used in or in relation to manufacture or are removed as such. Supplies to contractors for mine development and extraction used to produce the assessee's final product do not constitute removal of inputs, so Rule 3(5) does not apply and the credit need not be reversed; the impugned demand was set aside. Case-Laws Central Excise Thu, 19 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=787651