Admissibility of CENVAT credit to inputs and capital goods used by the manufacturer outside the factory premises.

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....t in Civil Appeal No.5340-5341 of 2000 in the case of M/s. Jaypee Rewa Cement wherein the Apex Court has held that MODVAT credit on explosives used in mines (which are outside the factory premises) for mining of lime stone (intermediate product) shall be available to the manufacturing unit under Rule 57 J of the erstwhile Central Excise Rules, 1944. Accordingly, the matter of admissibility of Cenv....

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....nal products. Moreover, as per Rule 3(1) of the said Rules, credit on inputs is also admissible when inputs are used in the manufacture of intermediate products by a job worker availing the benefit of notification No.214/86-CE dated 25.3.86. Further, in terms of Rule 4(5), capital goods may be sent to a job worker's premises for production of goods. Therefore, in view of the said statutory provisi....