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2016 (11) TMI 924 - AT - Central ExciseCENVAT credit - iron ore - treatment of Iron Ore Fines for cenvat credit purpose, in dispute - Held that: - Admittedly, Iron Ore Lumps are put through a process of crushing to obtain the desired size and consistency. Iron Ore Fines of smaller size and of different consistency emerge which cannot be put into the intended use by the respondent. The point for decision is that whether the Iron Ore Fines, which are not used by the respondent in further manufacture and cleared, will attract the provisions of Rule 3 (5) of Cenvat Credit Rules, 2004. Admittedly, the Iron Ore procured on payment of duty cannot be used as such. The same are put through a process of crushing to obtain a required level of Iron Ore Concentrate. The respondent did obtain such concentrate and use the same for further manufacture. Such being the case, incidental emergence of Iron Ore Fines, which cannot be put into the same use by the appellant, and accordingly cleared by them, for a consideration, will not attract the provisions of the said Rules. The inputs are put to use as intended by them. The emerging fines, which is nothing but a incidental product, cannot be equated to the inputs (Iron Ore) as such - appeal rejected - decided against appellant.
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