2003 (8) TMI 140

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....hem in their mines on the ground that these inputs were not used within the factory of production. The learned Advocate, further, submitted that the Supreme Court in the case of Jaypee Rewa Cement v. Commissioner, [2001 (133) E.L.T. 3 (S.C.)] has held that explosives which are used outside the factory by cement manufactures for excavation of limestone are eligible for duty credit as inputs; that therefore, inputs used by them in their mines are eligible for Cenvat credit; that the definition of inputs in Rule 2(f) (sic) of Cenvat Credit Rules, 2001 does not prevent the use or inputs outside the factory; that the expression 'within the factory of production' occurring at the end of the said Rule does not relate to the inputs but relates to a....

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.... perusal of the definition of the inputs clearly reveals that the inputs are required to be used within the factory of production; that this has also been clarified by the Board vide Circular No. 12/02-CX. 8, dated 8-5-2002. 4. I have considered the submissions of both the sides. The definition of the inputs as given in Cenvat Credit Rules clearly provides that inputs are required to be used for manufacture of final products or for any purpose within the factory of production. As per the definition of the 'inputs', goods will qualify as inputs if the following conditions are specified : (i)         Goods are used in or in relation to the manufacture of final products, directly or indirectly and whet....