Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2009 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (5) TMI 433 - AT - Central ExciseCenvat credit- The respondent Hi-grade Pellet Ltd. received iron ore fines and subjected them to process of sieving and grinding. For this purpose, they used grinding media which are of steel walls. On this they take Cenvat credit. In the process of sieving/grinding, some fines whose sizes are above 10 mm are separated and sold to various purchasers. The case of the department is that the input is used in the manufacture of dutiable and exempted goods. The fines which are found suitable are actually inputs for making pellets. Taking this position, revenue proceeded against the appellant and 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 so far as the manufacture of pellet is concerned, these particles have to be considered as waste. Therefore, they cannot be treated as final products manufactured out of cenvat inputs. The application of Rule 6 of the Cenvat Credit Rules in demanding 8% amount does not appear to be correct. In our view, the impugned order of the Commissioner (A) allowing the respondents appeal is legal and proper. We do not find any merit in the grounds of appeal of the Revenue. Hence, the same is dismissed
|