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2012 (8) TMI 822 - AT - Central ExciseWaiver of pre-deposit of Cenvat credit - Cenvat/Modvat Inputs and capital goods used in mines - Held that:- undisputedly, the mines are 100% captive mines which are allotted to the applicant for production of coal and iron ore. The coal extracted/produced are ultimately used in or in relation to the manufacture of finished products at their factory at Gamharia. Similarly, the iron ores extracted/produced at their mines at Bokna are used in the manufacture of finished products. It is also not in dispute that the applicant availed proportionate credit of the Service Tax to the extent the iron ores of the sizes between 5 mm to 18 mm are brought to their Gamharia factory from Bokna mines and used in or in relation to the manufacture of the final products. We also find, on a plain reading of the definition of ‘input service’, prescribed at Rule 2(l) of Cenvat Credit Rules, 2004, that procurement of inputs is specifically included in the list of services mentioned under the said definition. Besides, we also find that the input services used in the production of coal and iron ore at the respective mines, are not in dispute. Since these coal ores are ultimately used in the factory of Gamharia in the manufacture of finished products, the Cenvat credit on the same cannot be denied. - applicant are able to make out a prima facie case for total waiver of pre-deposit of duty and penalty - Stay granted.
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