TMI Blog2009 (1) TMI 626X X X X Extracts X X X X X X X X Extracts X X X X ..... artly used within their factory for further manufacture and they have sold electricity valued nearly Rs. 30 crores to the Electricity Board. While processing iron ore for use in the manufacture of sponge iron, they get a product known as iron ore fine and they have sold the said item for a value of Rs. 1,94,92,382/- during the disputed period. 2.2 Part of the Iron ore used by them was duty paid and they had taken credit of duty paid on iron ore. They have also taken credit of duty paid on services like GTA services, Cargo Handling services, Manpower Recruitment services and Security services. 2.3 The original authority held that the electricity sold by them is excisable goods and that it is exempted. Similarly, he held that iron ore f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure involved. Iron ore is merely subject to the process like segregation which lead to emergence of the product, iron ore fine and at the most the same can be considered as waste not arising out of any process of manufacture. 3.3 Learned Advocate also submits that as electricity and iron ore fine are not excisable goods, the applicability of Rule 6(2) of CENVAT Credit Rules is not warranted. Further, they have reversed a sum of about 14 lakhs attributable to services tax paid under GTA services in respect of quantity of coal used in the production of electricity sold by them. He submits that they were not required to reverse the said credit in respect of electricity sold by them. He, further, submits that they have reversed a sum of Rs. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... des. The submission of the learned Advocate that electricity cannot be considered either as excisable or exempted appears prima facie acceptable. Even after accepting the claim that the electricity is non-excisable, the credit availed in respect of inputs/input services appears to be recoverable in the light of the decision of the Supreme Court in the case of Solaris Chemtech Limited (supra). 5.2 Whether iron ore fine can be considered to be a product different from iron ore and whether liable to excise duty was not an issue in the show cause notice. The Commissioner proceeded on the ground that the said goods are exempted. Even if they are not exempted, the credit attributed to inputs/input services requires to be disallowed. 5.3 Howev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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