COMMNR. OF CENTRAL EXCISE,JAIPUR vs M/S. J.K. UDAIPUR UDYOG LTD.

The Supreme Court ruled that explosives used in mining operations qualify as 'inputs' for the purpose of CENVAT Credit under Rule 57AB of the Central Excise Rules. The Court held that the mining and manufacturing processes are interdependent, establishing a direct nexus between the two activities. Consequently, the Court upheld the decision of the Commissioner (Appeals) allowing the CENVAT Credit to the respondent, affirming the dismissal of the Revenue's appeal by the CEGAT.