TaxTMI 
TaxTMI 
2019 (1) TMI 972
X X X X Extracts X X X X
X X X X Extracts X X X X
....t the appellant had availed cenvat credit on cement used in mines for filling pits after extraction of ore. The same is denied by the department to be termed as input for the manufacture of the final product. Resultantly the respective cenvat credits have been disallowed and have been proposed to be recovered respectively for such an amount and for such a period vide such show cause notices. Resultantly, the present appeals. 2. I have heard Sh. Shantanu Kumar, Ld. Advocate for the appellant and Ms. Tamana Alam, Ld. DR for the Department. 3. It is submitted on behalf of the appellants that they have availed the cenvat credit on the cement used for filling the open pits of the mines prior initiating the subsequent extraction of ore in t....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... parties and perusing the record I hold as follows: The moot question to be decided for these Appeals is as to whether the cement used by the appellant who were asked to extract ore from the proposed ore block but only after conducting stopping operations of the said ore blocks, can be called as input. For the purpose the definition of input should be relevant: Section 2 (k) [(k) "input" means - (i) all goods used in the factory by the manufacturer of the final product; or (ii) any goods including accessories, cleared along with the final product, the value of which is included in the value of the final product and goods used for providing free warranty for final products; or (iii) all goods used for generation of electricity....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e may specify therein. An application for such permission shall be accompanied by an up-to-date plan of the area where the pillars or blocks of mineral are proposed to be extracted or reduced, showing the proposed extent of extraction or reduction, the manner in which such extraction or reduction is proposed to be carried out, the thickness and other characteristics of the mineral deposit, the rate and direction of general dip and of the pitch of the vein, the nature of hangwall, and footwall, the stoping width, the depth of the workings, and such other particulars as the Chief Inspector may require. A copy of the application and the plan shall simultaneously be sent to the Regional Inspector. (3-A) The operations of extraction, splittin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....for the purpose of taking Cenvat credit. Thus, an assessee only needs to prove that the goods were received in the factory and that the same are not covered by any of the exclusions, since the definition of input is very wide intending to take within its ambit all goods used in the factory of the manufacturer of final product. Undisputedly, in the present case, cement has been used within the mining area, thus qualifies for cenvat credit. In support of this, reliance is placed upon the decision of the Hon'ble Tribunal in the case of Prism Cement Ltd. Vs. CCE & ST, Jabalpur, 2016 (338) ELT 593 (Tri.-Del.)". 9. Thus, I opine that the cement used herein is a good which has relation, though indirectly, with the extraction of ore thus it qual....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ll within the expression in the manufacture of goods." 11. This Tribunal also in Final Order 56900/2017 dated 28.09.2017 has relied upon the decision of Fertilizer Cooperation Ltd. Vs. CCE Ahmadabad 1996 (86) ELT 177 (S.C.) has quoted as follows: "2. The primary contention of the revenue in this case is that the items are not used in or in relation to the manufacture of final product. The first of the items is Hydrochloric Acid (HCL). According to the department, HCL was used to treat the effluent which was a wastage obtained and hence it was not used in or in relation to the manufacturing process. This issue is no longer res integra as it has already been considered by the Supreme Court in the case of Indian Farmers Fertiliser Co-ope....
X X X X Extracts X X X X
X X X X Extracts X X X X
....id the effluents of dangerous properties. The apparatus used for such treatment of effluents in a plant manufacturing a particular end product is part and parcel of the manufacturing process of that end product. The ammonia used in the treatment of effluents from the urea plant of the appellants has, therefore, to be held to be used in the manufacture of urea and the raw naphtha used in the manufacture of such ammonia to be entitled to the said exemption. 12. Following these earlier decisions and keeping in view the above discussion, I am of the opinion that without filling of the ore pits the appellant was statutorily, not in position to extract the ore, i.e. the final product thus the use of cement was very much in relation to the manu....