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2018 (12) TMI 1104 - CESTAT NEW DELHICENVAT Credit - excisable or exempt goods? - Whether the iron ore fines as cleared by the appellants can be considered as a separate excisable but exempted commodity? - Held that:- The admitted procedure adopted by the appellant in manufacturing his final product i.e. sponge iron is that the appellant procures iron ore as the input for manufacturing sponge iron. The said iron ore lumps of different sizes are first crushed and are then segregated by screening. It is thereafter that requisite sized iron ore /ore lump is feeded in the sponge iron klin. In the aforesaid process of segregation that the iron ore fines are inevitably generated. Thus these fines, cannot be considered as the result of the manufacturing activity of the appellant, since no manufacturing activity is involved for emergence of the same out of iron ore by the appellant. The Department has brought nothing on record to show that the iron ore fines can be considered as exempted goods. Apparently and admittedly, there is no Notification of the Revenue granting exemption to this product. Thus, the embargo created in Rule 6 (3) (b) of CCR will not apply for removal of iron ore fines from the appellant’s factory. Confirmation of demand by Commissioner (Appeals) is therefore, held to be not proper and justified. Appeal allowed - decided in favor of appellant.
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