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2023 (6) TMI 236 - AT - Central ExciseCENVAT Credit - inputs - TMT Cutting, Square Cobble, MRM Rolls Spoils, Misrolls & End cutting, Scrap & Melting Scrap - manufacture of their final products MS Flat/Bar, MS Channel, MS Round, MS Angle, MS Ribbed Bar etc - Department’s contention is that the Appellant is only a Rolling Mill and does not have furnace for melting of such waste and scrap and hence they could not have used these scrap as ‘inputs’ to manufacture their finished goods namely hot rolled products - suppression of facts - extended period of limitation. HELD THAT:- As per Rule 3 of Cenvat Credit Rules 2004, any manufacturer can avail credit of duty paid on any goods (excepting light diesel oil, high speed diesel oil and motor spirit) treating the same as ‘input’ if those goods are used in or in relation to manufacture of their final products. Thus for the purpose of availment of credit on such items, it has to be established that the same were used in the manufacture of final products. Rule 3(1) of the Cenvat Credit Rules, 2004 clearly states that a manufacturer or producer of final products and a provider of output service shall be allowed to take credit of the duty paid on eligible inputs or services. It means that cenvat credit can be availed by manufacturer or producer of final products who uses the inputs in or in relation to manufacture of final products. Rule 2(k)(i) of the Cenvat Credit Rules, 2004 which defines ‘iputs’ for manufacturer states that these should be ‘used in the factory’. In the instant case, there is no evidence brought on record to show that the impugned goods purchased by the Appellant from IISCO and other manufacturers on payment of duty has not been used in the factory. Only an allegation has been made without any evidence that the scrap were not used in the factory as they were not capable to be used in the manufacture of Billets or Ingots. The Appellant stated that the goods so purchased from SAIL and others have been subjected to heating, straightening to make suitable for rolling and sometimes cut to sizes and then rerolled to manufacture their final products - the Appellants are eligible for the CENVAT credit availed on the ‘inputs’ used in the manufacture of their final products namely, Rerolled products, MS Flat/Bar, MS Angle, MS Channel, MS Round etc and hence the demands made in the impugned order is not sustainable. Extended period of limitation - suppression of tacts - HELD THAT:- When a show cause notice was already issued and the facts are in the knowledge of the authorities, then another notice cannot be issued on the same facts alleging suppression of facts. Thus, the Notice dated 23/04/205 issued on the same ground and the impugned order confirming the demands made in the Notice are not sustainable on the ground of limitation also. Thus, the demands made in the impugned orders along with the demand of interest and penalties are not sustainable on merit as well as on the ground of limitation. The impugned orders set aside - appeal allowed.
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