TMI Blog2018 (12) TMI 1104X X X X Extracts X X X X X X X X Extracts X X X X ..... . 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. - Excise Appeal No. E/52992/2018-EX [SM], E/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any amount of duty paid on iron ore fines manufactured and removed during the said period. 3. The Department also observed that in manufacture of sponge iron, iron ore lumps of different sizes are firstly subjected to crushing, thereafter iron ore fines are taken out/screened out from the raw-material handling plant. The said taken out /screened out iron ore fines, which are in powder form cannot be used for manufacture of sponge iron. Iron ore lumps and iron ore fines are separately classifiable under Central Excise Tariff depending upon the percentage of iron content therein. The Department still forming an opinion that the appellants were liable to discharge their liability on clearance of iron ore fines as well, issued a show cause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (f) of the Central Excise Rules, the fines cannot be called as excisable goods. There is no Notification which has granted any exemption to this Product. Hence, the allegations of the Department are not sustainable. Otherwise also the appellants are registered with the Excise Department for manufacturing of excisable goods i.e. sponge iron and not for the iron ore fines. However, iron ore and coal are their raw-materials. Hence in accordance of provisions of Rule 3 of CCR, on receipt of the iron ore in the factory, the appellants are eligible for the cenvat credit, irrespective of the fact that the inputs were returned or removed as such by the respondent. While impressing upon the findings of Asstt. Commissioner / original adjudicating au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctivity of the appellant, not only from the show cause notice, but from the appellant s submission. 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, to my opinion cannot be considered as the result of the manufacturing activity of the appellant, since no manufacturing activity is involved for emergence of the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. The decision of this Tribunal in the case of Commissioner, Excise and Service Tax, Raipur vs. Arathi Sponge and Power Ltd.. 2016 (333) ELT 415 supports my finding. The facts of that case are identical as the one as of the present appeals. The Tribunal while relying upon previous decision in the case of Real Ispat Power Ltd. reported as 2013 (287) ELT 494 and also of Rallys India Ltd. vs. Union of India reported in 2009 (233) ELT (309) (High Court Mumbai) has held that the respondent is engaged in manufacture of sponge iron for which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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