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2017 (5) TMI 514 - AT - Central ExciseReversal of CENVAT credit - inputs and capital goods such as explosives, lubricants, detonators, components etc. provided to contractors for mine development work/ore productions - whether the explosives, lubricants, detonators, pipes and rods on which Cenvat Credit was availed and supplied to various outsource companies who undertake the mining activities is correct or the respondent is required to discharge the Cenvat Credit on such goods? Held that: - the adjudicating authority after recording the entire issue of how the contracts have been signed by the respondent with their clients for mining activity and also provision of rule 3(5) of the Cenvat Credit Rules recorded that the SCN itself admits that the goods have been used for undertaking mining activities on behalf of the assessee. As such there is no removal of inputs or capital goods and there is no question of any reversal under rule 3(5) of the Cenvat Credit Rules 2004. Therefore, credit cannot be denied in this case - In the absence of any evidence to show that these goods were never used in the mining area of the respondent, the findings recorded by the adjudicating authority are correct and there is no need for interference in such reasoned order - credit remains allowed. Reliance placed in the case of C.C.E., Raipur Versus Bhilai Steel Plant [2017 (1) TMI 293 - CESTAT NEW DELHI], where it was held that no amount is required to be paid under Rule (4) on capital goods as there has been no removal. Appeal dismissed - decided against Revenue.
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