2009 (5) TMI 433

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..... d demanded 8% on the sale value of the iron ore chips. The lower authority confirmed the amount, demanded interest, imposed equal penalty. The respondents approached the Commissioner (A). The Commissioner (A) in the impugned order has given a finding that the demands for 8% amount for the material period on the value of clearances of iron ore chips emerging from the ball mill employing cenvat availed grinding media, is not sustainable. Held that- the iron ore fines have been subjected to the process of sieving and grinding. There is force in the contention of the learned advocate that no process of manufacture is involved in getting the iron ore chips. During the process of sieving, particles of dimension larger than 10 mm are discarded. In .....

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..... he iron ore chips. The lower authority confirmed the amount, demanded interest, imposed equal penalty. The respondents approached the Commissioner (A). The Commissioner (A) in the impugned order has given a finding that the demands for 8% amount for the material period on the value of clearances of iron ore chips emerging from the ball mill employing cenvat availed grinding media, is not sustainable. He relied on the following case-laws. (i) The Gas Authority of India Ltd. v. CCE, Mumbai Vadodara - 2001 (136) E.L.T. 1019 (Tribunal - Mumbai) ; and (ii) CCE, Bolpur v. Durgapur Cement Works - 1997 (90) E.L.T. 197 (Tribunal). 4. Revenue is aggrieved over the impugned order on the following grounds. (i) Commissioner (A .....

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..... d iron ore chips is effectively countered by this case law' is totally misplaced. In fact the essence of this case law that 'grinding balls' are eligible for Cenvat credit strengthens the case of the Department inasmuch as the assessee has been using common inputs for exempted as well as dutiable final products. 5. We have gone through the facts of the case carefully. In this case, the iron ore fines have been subjected to the process of sieving and grinding. There is force in the contention of the learned advocate that no process of manufacture is involved in getting the iron ore chips. During the process of sieving, particles of dimension larger than 10 mm are discarded. In so far as the manufacture of pellet is concerned, these particl .....

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