AIR 2004 SUPREME COURT 4437 ::2004 AIR SCW 4986 ::(2004) 171 ELT 289 ::(2004) 116 ECR 191 ::(2004) 22 IndLD 361 ::2004 (7) SCC 344 ::(2004) 4 RecCivR 306 ::(2004) 7 Scale 414 ::2004 (7) ACE 79 ::2004 (4) LRI 104 ::2004 (7) SLT 1 ::2004 (8) Supreme 322 ::(2005) 27 AllIndCas 497 (SC) ::2005 (27) AllIndCas 497 ::2004 (8) SRJ 428 ::(2004) 7 JT 152 (SC)

Supreme Court Of India

Hon'ble Judge(s): S. N. Variava, G. P. Mathur , JJ

(A) Central Excise Act (1 of 1944) , S.37— Central Excise Rules (1944) , R.57AB— CENVAT Credit - Explosives used in mines for blasting purpose cannot be held to be "inputs" so as to qualify for taking CENVAT Credit under R. 57-AB. The expression "used for manufacture of final products or for any other purpose, within the factory of production" in the definition of "input" is important and it clearly indicates that in order to satisfy the requirement of sub-rule (d) of R. 57-AA the article or goods must be used within the factory of production. If the article is not used within the factory of production, it will not be "input" within the meaning of sub-rule (d) of R. 57-AA and CENVAT Credit will not be admissible under R. 57-AB. Rule 57-AC deals with conditions for allowing CENVAT Credit and under sub-rule (1) thereof such credit can be taken immediately on receipt of the inputs in the factory of manufacture. This provision also shows that actual receipt and use of the "input within the factory of production is essential for availing CENVAT Credit. It is the admitted case of the assessee that the explosives have been used for blasting purpose in the mines and not in the factory where cement is produced and consequently on the plain language of sub-rule (d) of R. 57-AA and R. 57-AC it will not qualify to be "input" for which CENVAT Credit may be taken under R.....