Judgment

Ruma Pal, J.—The question whether the decision in Jaypee Rewa Cement Vs. CCE 2001 (133) ELT 3 SC would apply to the CENVAT Rules 2000 framed under the Cement Excise Tariff Act 1985 (referred to as the ‘Act’) is to be decided on a reference made in this case. A Bench of two judges of this Court in Commissioner of Central Excise, Jaipur Vs. J.K. Udaipur Udyog Ltd. 2004 (171) ELT 289 SC held that Jaypee Rewa Cement did not apply to the CENVAT Rules. The view would doubted in this case by a Bench of coordinate strength which referred the following question to us:-

"In the light of the provisions of the Cenvat scheme vis-a-vis Modvat scheme reproduced hereinabove, we are of the view that the observations made in paragraph 9 of the decision of the Division Bench, quoted above, in the case of Commissioner of Central Excise, Jaipur vs. J.K. Udaipur Udyog Ltd. reported in 2004(171) ELT 289 needs reconsideration."

2. The reference was made in the factual context of the appellants availing of CENVAT credit on explosives and other inputs used in quarrying limestone, which was in turn used for the manufacture of cement and clinkers, which are classifiable under Chapter 25. The limestone m