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2013 (5) TMI 119 - CESTAT KOLKATARemoval as such - Reversal of proportionate cenvat credit of service tax paid on the GTA service - as per dept. instead of utilizing the entire quantity of iron ores in the manufacture of final products, they have sold a quantity of 2455.05 MTs of "iron ores" as "iron ore fines" - demand confirmed and an penalty of ₹ 2,000/- u/r 15 of Cenvat Credit Rules, 2004, besides recovery of interest - Held that:- No merit in the allegation of Department as firstly the input iron ores after being brought to the factory, were subjected to the process of screening and process of screening would definitely a part of the manufacturing process. After the iron ores are subjected to the process of screening, the same could not be called as input as such. Secondly, Rule 3 (5) of the Cenvat Credit Rules, 2004, is directed for reversal of cenvat credit on inputs or capital goods and the same is not applicable to the credit availed on the "input services". See Punjab Steels (2010 (7) TMI 252 - PUNJAB AND HARYANA HIGH COURT) & Chitrakoot Steel & Power (P.) Ltd. (2007 (11) TMI 135 - CESTAT, CHENNAI) wherein held that when the credit availed inputs or capital goods are removed from the factory of the assessee, sub-rule (5) of Rule 3 of the Cenvat Credit Rules, 2004 provides for recovery of equal amount of credit. There is no such provision to reverse credit of service tax availed in relation to such inputs or capital goods when removed from the factory. In favour of assessee.
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