TMI Blog2013 (1) TMI 583X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of duty - Notification No. 6/2002-C.E – Revenue demanding payment of an amount equal to 10%/5% of the value of the exempted goods - Rule 6(3)(i) of die CENVAT Credit Rules, 2004 – Held that:- Following the decision in case of HI-TECH CARBON (2003 (3) TMI 238 - CEGAT, NEW DELHI) that that the above gases are burnt out, which generate heat and in turn the same is used in the boiler to generate steam. No doubt, the steam has been generated by the applicants as a conscious act but it cannot be claimed by the Revenue that any part of the inputs has gone into the manufacture of steam Applicants have made out a case for 100% waiver of pre-deposit. In favour of assessee - E/167/2011 - 714/2012 - Dated:- 2-8-2012 - S/Shri Ashok Jindal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and partly by themselves. While they are manufacturing on job work basis, they are following the procedure under Notification No. 214/1986, dated 1-3-1986. For the manufacturing activity of sponge iron , the applicants are having a rotary kiln installed in their premises. Iron ore, coal, dolomite, fuel, service lubricants and chemicals are the inputs used in the manufacture of sponge iron . The applicants used input services in or in relation to manufacture of their final product. They have availed CENVAT Credit of duty/service tax paid on lubricants, chemicals and taxable services. The service lubricants are used for operating the rotary kiln in which the sponge iron is manufactured. The process of manufacturing of sponge iron invol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osit. 3. Shri S. Jai Kumar, learned counsel for the applicants appeared and submitted that the impugned activity of the applicants is manufacture of sponge iron and in the manufacturing process as stated herein above, they cannot let out the flue gases into the atmosphere, therefore, as per the Pollution Control Act, it is necessary for them to install the Waste Heat Recovery Boiler and Electrostatic Precipitator . Therefore, they are entitled to CENVAT Credit availed on Water Heat Recovery Boiler . He further submitted that the steam gas which is generated in the process of manufacturing of the final product is not liable to excise duty and they have not taken any credit on the inputs for manufacturing of the steam. Steam is genera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and claimed by the appellants as a pollution control device, which is covered by Rule 2(a)(A)(ii) of CENVAT Credit Rules, 2004. Therefore, we, prima facie, do agree with the learned counsel that they are entitled to CENVAT credit on the Water Heat Recovery Boiler . Further, we find that the steam has been generated during the course of cooling down of flue gases, the similar issue was for consideration before this Tribunal in the case of Hi-tech Carbon (supra). Wherein this Tribunal has observed that the above gases are burnt out, which generate heat and in turn the same is used in the boiler to generate steam. No doubt, the steam has been generated by the applicants as a conscious act but it cannot be claimed by the Revenue that any ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
